* Another strong quarter for P&M orders
* Sales EUR 44.7m, adj. EBIT 1.1m
* Improved market outlook
Q2 results
Cavotec reported a sequentially better Q2 results with a strong order intake and sales while missing on earnings. Order intake came in at EUR 49.4m (36% vs. ABGSCe 36.3m, 11% y-o-y), for a R12m book to bill of 1.2. Strong order beat as expected, driven by two large shore power orders (~EUR 15m in total) announced after the publication of our preview, where EUR 7m is expected to be delivered in 2026. Sales came in at EUR 44.7m (20% vs. ABGSCe 37.2m), 25.3% y-o-y (organic at 24.6%). Adj. EBIT was EUR 1.1m (vs. ABGSCe EUR 3.5m), for a margin of 2.5% (ABGSCe 9.3%). Sales beat driven by Ports & Maritime, while adj. EBIT miss vs ABGSCe driven by mix effects of delayed deliveries of low-margin shore power projects in the same division.
Estimates and outlook
On numbers alone, '26e-'28e sales is increased by 5-4%, and adj. EBIT is lowered by EUR ~2m. Q2 is sequentially better, and while the strong order momentum from Q1 is sustained, profitability continues to trail. Improved outlook comments from management, stating that "underlying markets are healthy".
Valuation
The share has been strong into the numbers, +12% L10D (vs. OMXSALLS 1%), and is currently trading at 24x-10x '26e-'27e EV/EBIT adj. on our pre-report estimates vs. the peer median of 16x-14x. The company is hosting a conference call at 10:00 CET.