Vaisala - Outlook for 2025 below our estimates
Vaisala's Q4 results aligned with the preliminary figures the company disclosed in January. The outlook for 2025E is slightly weaker than our estimates especially in terms of net sales.
- Q4 group result: Vaisala’s Q4 figures were in line with the preliminary figures given out in January as net sales came in at EUR 167.5m and EBIT was at EUR 28.0m. The profitability improved drastically y/y due to the rapid growth in net sales and the company’s successful cost management.
- Industrial measurements (IM): Orders received increased by 6% y/y while order book grew 5% to EUR 37.0m. Net sales were at EUR 64.6m, growing strongly at 12% y/y. Net sales increased in industrial instruments, life science, as well as in power and energy markets segments. Net sales decreased somewhat in liquid measurements segment. IM gross margin was at 61.6% (60.7%) and EBIT at EUR 13.7m with a margin of 21.2% (Q4/23 EUR 8.7m, 15.1%).
- Weather and Environment (W&E): Orders received decreased by 7% y/y while order book was up by 30% y/y. W&E’s net sales increased by 15% to EUR 103.0m. Net sales grew across the W&E yet growth in subscription sales was the strongest with growth of 30% y/y. Net sales grew strongly in aviation and renewable energy market segments and were at previous year’s levels in meteorology. Net sales decreased slightly in the road segment. Gross margin improved to 53.1% (Q4/23 50.3%). EBIT was at EUR 14.2m (Q4/23 EUR 7.5m) with a margin of 13.8% (8.3%).
- Outlook 2025: Net sales EUR 590-620m and EBITA EUR 90-105m.
- We currently estimate net sales of EUR 638m and EBITA of EUR 105m for 2025E. Hence, the guidance suggests some downward pressure on our estimates, particularly concerning net sales.
- Dividend: Vaisala’s BoD proposes a DPS of EUR 0.85, lower than our ambitious estimates of EUR 0.98 per share, yet in line with the company’s dividend policy.