Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CTT Systems AB (LTS:0GUO, Financial) experienced strong business momentum in the private jet sector, delivering multiple ACJ320 kit systems.
- The company received five new orders in Q2, including a significant wide-bodied VIP project for four BBJ 787s.
- Aftermarket sales rebounded to SEK57 million, recovering from a temporary dip in Q1.
- Order intake increased significantly to SEK89 million, driven by private jet and OEM orders.
- CTT Systems AB expects strong growth in OEM and private jet markets, with significant order flow from Airbus corporate jets.
Negative Points
- Reported sales decreased by 3% from SEK82 million to SEK80 million compared to the same quarter last year.
- Operating profit (EBIT) decreased by 18%, with the EBIT margin dropping from 38% to 23%.
- Earnings per share fell from SEK1.96 to SEK1.19, indicating a decline in profitability.
- The company faced a negative currency impact of SEK8 million on net sales due to a 10% USD/SEK movement.
- Net debt increased to SEK45 million, compared to a negative SEK5 million in Q2 of the previous year.
Q & A Highlights
Q: What are the current effects among OEMs, and are they due to inventory adjustments or production disturbances?
A: Henrik Hojer, CEO: The OEMs, specifically Airbus and Boeing, are ramping up production. They started the year at around five aircraft per month and have increased to roughly seven aircraft per month. While the situation is stabilizing, fluctuations from quarter to quarter are still expected.
Q: How should we think about VIP private jet deliveries in the second half of 2025?
A: Henrik Hojer, CEO: We are establishing ourselves at a higher level with small fluctuations expected quarter to quarter. We anticipate a stable level for a few quarters in the private jet segment.
Q: When should we start seeing similar growth rates for aftermarket sales, given the 20% growth in the installed base?
A: Henrik Hojer, CEO: Using Boeing as an example, they plan to increase production from five to ten aircraft per month by 2026. This will significantly increase systems installed, and roughly one year after deliveries, we expect to see a demand for consumables and spare parts, impacting aftermarket sales.
Q: How much of the SEK70 million to SEK80 million guidance is due to new currency assumptions?
A: Markus Berg, CFO: Our guidance is based on the assumption that the US dollar exchange rate will remain at the same level as in Q2, close to 9.5.
Q: Could things improve in Q4, or will it mainly be Q1 2026?
A: Henrik Hojer, CEO: We are currently forecasting one quarter at a time. We will have more clarity on Q4 as we progress further into Q3.
Q: Can you provide more details on potential tariffs?
A: Henrik Hojer, CEO: Currently, there is a 10% tariff on EU goods to the US, which Boeing absorbs when importing our systems. They receive a refund for exports, making it primarily a cash flow issue. We are hopeful that aviation will remain a tariff-free market due to its significant contribution to the US trade surplus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
