Vaisala - Slower growth than expected
Vaisala’s growth was slower than we expected as net sales grew 5% to EUR 136.6m (Evli est. EUR 142.3m). With the lower-than-expected net sales, profitability was also below our estimates. Orders were strong as expected.
- Q3 group result: Orders received increased 26% y/y while the order book stood at EUR 220.4m, growing 33% compared to last year. Group net sales increased by 5% to EUR 136.6m, falling short of our estimate of EUR 142.3m. Gross margin fell slightly y/y to 57.3% (58.0% Q3/23). EBIT amounted to EUR 24.1m (EUR 28.0/27.8m Evli/cons.), reflecting a margin of 17.7% (19.3%).
- Industrial measurements (IM): Orders received increased by 12% y/y while order book grew 7% to EUR 36.8m. Net sales were at EUR 57.4m, growing 6% y/y Net sales increased in industrial instruments, liquid, as well as in power and energy markets segments. Net sales decreased somewhat in life science market segment. Service sales grew 29% y/y driven by growth in installed base from last year. IM gross margin was at 63.1% (64.0%) and EBIT at EUR 15.5m with a margin of 26.9% (Q3/23 EUR 14.7m, 27.3%).
- Weather and Environment (W&E): Orders received increased by 36% y/y while order book was up by 40% y/y. W&E’s net sales increased by 4% to EUR 79.2m. Subscription and project sales grew strongly in the quarter. Net sales decreased strongly in renewable energy market segment and somewhat in meteorology market segment. Gross margin decreased to 53.1% (Q3/23 53.7%). EBIT was at EUR 8.8m (Q3/23 EUR 10.4m) with a margin of 11.1% (13.7%).
- Outlook 2024 (unchanged) Net sales EUR 540-570m and EBIT EUR 68-78m.