CTT Systems AB (CTT) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. Welcome to CTT's quarterly earnings call. I'm Henrik Høyer 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 181 million, driven by the largest order so far from Get2.com for 146 anti-condensation retrofit systems. We had four ACJ320 kit systems from Airbus Corporate Jets and received 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 CTTs distributors when entering into Q1. As a consequence, net sales dropped to 54 million due to halted orders from well stocked distributors that could deliver from stock, pushing down CTTs after market sales significantly below underlying demand in the quarter. This is temporary dip as aftermarket demand from airlines remain normal throughout the quarter, reducing distributors inventors back to average level. Operating profit EBIT was 4 million versus 33 million same period last year. The EBIT margin was 7% versus 42. CTT generated operating cash flow of 4 million. Earnings per share decreased to 0.03 versus 1.93. Net sales bridge shows a decrease of 24 million that was driven by a 31 million drop in aftermarket sales due to the mentioned temporary order halt from distributors. Private jet revenue decreased 2 million as some kit deliveries was pushed from Q1 into Q2. OEM sales almost doubled to 18 million as deliveries to the 787 program again reflected actual build grade content. Breaking down the total sales, aftermarket sales accounted for 58% of total turnover and 33% came from OEM sales. Order...