CTT Systems AB (CTT) Q1 2025 Earnings Call

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WEBVTT 00:00:00.588 -- 00:00:04.131 Good morning. Welcome to CTT's quarterly earnings call. 00:00:04.131 -- 00:00:06.954 I'm Henrik Høyer and with me is Markus Berg. 00:00:06.954 -- 00:00:12.317 We will present Q1 financial results and the outlook going forward. 00:00:12.760 -- 00:00:17.544 Starting with the business highlights, the OEM sales doubled, driven by resumed deliveries 00:00:17.544 -- 00:00:22.709 to the Boeing 787 program. We had a record high order intake of 181 00:00:22.709 -- 00:00:29.396 million, driven by the largest order so far from Get2.com for 146 anti-condensation 00:00:29.396 -- 00:00:34.692 retrofit systems. We had four ACJ320 kit systems from Airbus 00:00:34.692 -- 00:00:39.886 Corporate Jets and received resumed orders from distributors for aftermarket 00:00:39.886 -- 00:00:44.693 products to be delivered in Q2 and Q3. 00:00:45.239 -- 00:00:50.048 As expected, the financial performance in the quarter was impacted by high inventories 00:00:50.048 -- 00:00:53.495 at CTTs distributors when entering into Q1. 00:00:53.495 -- 00:00:57.459 As a consequence, net sales dropped to 54 00:00:57.743 -- 00:01:03.274 million due to halted orders from well stocked distributors that could deliver from stock, 00:01:03.274 -- 00:01:09.016 pushing down CTTs after market sales significantly below underlying demand in the quarter. 00:01:09.016 -- 00:01:13.741 This is temporary dip as aftermarket demand from airlines remain normal throughout the 00:01:13.741 -- 00:01:18.125 quarter, reducing distributors inventors back to average level. 00:01:18.125 -- 00:01:23.130 Operating profit EBIT was 4 million versus 33 million same period last 00:01:23.130 -- 00:01:28.315 year. The EBIT margin was 7% versus 42. CTT generated 00:01:28.315 -- 00:01:34.000 operating cash flow...