Detection Technology - Results largely as expected
DT’s Q4 results came in largely as expected as EBITA improved by EUR 0.6m y/y despite a flat top line. There weren’t big surprises in terms of sales mix. DT sees Q1’25 top line flat, while double-digit growth should continue in Q2’25 when all three broad product application areas are expected to grow.
- DT Q4 revenue grew by 0.9% y/y to EUR 31.6m vs the EUR 32.0m/31.5m Evli/consensus estimates whereas EBITA was EUR 5.2m vs the EUR 4.8m/5.2m Evli/consensus estimates. Cash flow increased due to good productivity and working capital management. The Indian facility’s ramp-up is progressing, and deliveries are set to start in late H1’25.
- Medical (MBU) revenue decreased by 4.6% y/y to EUR 12.5m, compared to our EUR 12.7m estimate. Growth is expected to return in Q1.
- Security (SBU) increased by 5.3% y/y to EUR 13.9m vs our EUR 13.6m estimate. Growth was primarily driven by robust demand for security CT and cargo imaging solutions. Sales are expected to temporarily decline in Q1 due to delays in airport construction, but growth should start again in Q2.
- Industrial (IBU) revenue grew by 4.2% y/y to EUR 5.2m, compared to our EUR 5.7m estimate. Demand was steady in Europe particularly within food and industrial CT applications, while strong demand in the APAC region was countered by pricing pressure due to intense competition. Growth is expected to continue in Q1.
- The BoD proposes a dividend of EUR 0.50 per share to be distributed, compared to the EUR 0.36/0.40 Evli/consensus estimates.
- DT expects Q1’25 revenue to remain stable and sees double-digit growth in Q2’25.