Q1 2025 CTT Systems AB Earnings Call Transcript
Key Points
- OEM sales doubled, driven by resumed deliveries to the Boeing 787 program.
- Record high order intake of SEK181 million, including a significant order from jet2.com.
- Backlog increased to SEK158 million, indicating strong future demand.
- The company expects a swift recovery in Q2 with net sales guidance of SEK75 million to SEK85 million.
- Strong momentum in OEM and private jet markets, with significant growth expected in 2025.
- Net sales dropped to SEK54 million due to halted orders from well-stocked distributors.
- Operating profit EBIT decreased significantly to SEK4 million from SEK33 million the previous year.
- Earnings per share fell sharply to SEK0.03 from SEK1.93.
- The EBIT margin dropped to 7% from 42% in the same period last year.
- The company faces potential challenges from tariffs affecting the aviation industry.
Good morning. Welcome to CTT's quarterly earnings call. I'm Henrik Hojer, and with me is Markus Berg. We will present Q1 financial results and the outlook going forward. Starting with the business highlights.
The OEM sales doubled, driven by resumed deliveries to the Boeing 787 program. We had a record high order intake of SEK181 million, driven by the largest order so far from jet2.com for 146 anti-condensation retrofit systems. We had four ACJ 320 kit systems from Airbus corporate jets and resumed orders from distributors for aftermarket products to be delivered in Q2 and Q3.
As expected, the financial performance in the quarter was impacted by high inventories at CTT's distributors when entering into Q1. As a consequence, net sales dropped to SEK54 million due to halted orders from well-stocked distributors that could deliver from stock, pushing down CTT's aftermarket sales significantly below underlying demand in the quarter.
This is temporary dip as aftermarket demand from airlines remain normal throughout the quarter
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