Exel Composites - Q2 results clearly above our estimate
Exel’s Q2 results landed clearly above our estimates as the EUR 26.6m revenue came in 8% higher than we estimated, which also led to the EUR 1.4m adjusted EBIT topping our EUR 0.3m estimate. Customer activity has clearly rebounded from its deepest slump, and the question now is how much further short-term recovery there might be as certain economic uncertainties continue.
- Exel Q2 revenue increased by 4.7% y/y to EUR 26.6m, compared to our EUR 24.7m estimate. Growth was driven by Industrial and Transportation customer industries, while Buildings and infrastructure also grew. Energy didn’t yet grow as the company still prepares to ramp up production of certain wind products in India.
- Adjusted EBIT amounted to EUR 1.4m vs our EUR 0.3m estimate as operating margin was 5.2%. Higher volumes and cost control measures supported profitability.
- Order intake was EUR 26.4m in Q2 as it grew by 4.0% y/y. Order backlog stood at EUR 34.5m at the end of June, or 31% higher than a year ago. Markets developed in line with management expectations. Customer activity increased in all strategic industries, except for the construction market where the situation remains challenging. H1 included several important new customer agreements, including a multi-year agreement with a major wind turbine manufacturer for spar caps supply from the new Indian factory. Customer activity is expected to remain at its current level in H2.
- Exel guides FY ‘24 revenue to increase and adjusted EBIT to increase significantly y/y (unchanged).