Raute - Order book drove strong results
Raute’s Q2 revenue and earnings were a lot higher than we estimated as performance improved thanks to the large orders received last year. Other than the impressive order book the market remains quite challenging, as reflected by the low EUR 20m Q2 order intake figure.
- Raute Q2 revenue increased by 94.5% y/y to EUR 57.1m vs our EUR 46.4m estimate as mill-sized projects’ deliveries progressed. Wood Processing landed at EUR 41.8m, compared to our EUR 32.9m estimate, while Services was EUR 10.7m vs our EUR 8.3m estimate. Analyzers amounted to EUR 4.5m, compared to our EUR 5.2m estimate.
- Comparable EBITDA came in at EUR 5.4m vs our EUR 3.5m estimate whereas EBIT was EUR 3.9m vs our EUR 2.1m estimate. Fixed cost control was also good. Wood Processing comparable EBITDA increased by EUR 5m y/y as the segment’s top line grew 141.3%. The EUR 1.8m Services EBITDA was also above our estimate, while Analyzers’ performance was softer than we estimated due to low level of new orders and the timing of mill-scale orders’ revenue recognition.
- Q2 order intake was EUR 20m, compared to our EUR 30m estimate. The figure included mainly service and modernization projects as customers remained in wait-and-see mode, however Services was a bright spot.
- Order book amounted to EUR 223m at the end of Q2 (EUR 202m a year ago).
- Raute guides FY ’24 revenue to be between EUR 185-210m and comparable EBITDA between EUR 13-17m (updated on Jun 19).