Q2 2024 CTT Systems AB Earnings Call Transcript
Key Points
- Net sales increased by 4% year-on-year to SEK82 million.
- CTT Systems AB (LTS:0GUO) has a strong financial position with net cash and an equity ratio of 70%.
- The company has seen significant progress in improving selection rates for its humidification systems, particularly for the A350 and 777X fleets.
- Aftermarket sales accounted for 80% of the turnover, indicating a strong recurring revenue stream.
- CTT Systems AB (LTS:0GUO) has entered into a promising MOU with Liebherr Aerospace to offer humidification systems for Bombardier's Global 7500/8000 jets.
- Net sales were slightly below the forecasted range due to delayed spares and repair deliveries.
- Operating profit (EBIT) decreased by SEK3 million year-on-year, with the EBIT margin dropping from 43% to 38%.
- Earnings per share decreased slightly to SEK1.96 from SEK1.98.
- The backlog decreased by SEK11 million to SEK38 million, indicating a lower level of future orders.
- Operating cash flow dropped significantly to SEK16 million from SEK62 million last year, driven by increased working capital and higher inventory levels.
Good morning and welcome to CTT's quarterly earnings call I'm Henrik Hojer. And with me is Mark Berg our CFO. We will present our financials for the second quarter and then our outlook going forward.
Next slide. First, I want to highlight some progress in our business. On the OEM side, we see continuous improvement in selection rates at Aircraft Interiors Expo in Hamburg three airlines confirm humidifiers selection for business stores, crew risks and flight deck on the first AC 50 batch and one airline confirmed maximum selection for 777X fleet. In addition, we met several airlines to confirm selection of humidification in flight deck and tourists.
On the private debt side, Airbus corporate jet extends its enhanced humidification kit system offering to also include the ACJ330 VIP aircraft with lower customer signed and project start in August, private jets and business jet. In July, CTT and liebherr aerospace agreed to enter an MOU to team up in an offering CTT's humidification system to Bombardier for the Global 7500/8000
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