CTT Systems AB (CTT) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you and good morning. Welcome to CTT's quarterly earnings call. We will present the Q2 financial result and outlook going forward. Starting with the quarterly business highlights, the strong business momentum continues in private jet. We delivered one complete ACJ320 kit and two ACJ320 kit systems, except for the window defrost kit that we'll be delivering Q3. In Q2, we received five new orders, one acj 320 on top of the four received in q1 and one wide body vip project for four bbj 787s om board order backlog increased with significant pickup in deliveries from q126 aftermarket rebounded as predicted from a temporary dip in q1 to 57 million shifting to the financial performance in short comparing the second quarter with the same quarter last year Reported sales decreased 3% from 82 to 80 million. If adjusting for currency sales increased 7% to 88 million. In the quarter, the minus 10% US dollar SEC movement had a negative impact of 8 million net sales. Operating profit EBIT decreased to 18 from 31 million. The EBIT margin was 23 versus 38%. Marcus will later more in-depth comment on EBIT, but I would like to highlight that the adjusted EBIT margin was 28%, if excluding temporary currency valuation impact and one-off costs from system tests on electronics. Earnings per share decreased from 1.19 SEC versus 1.96. We have initiated cost reduction improvement margins and profit. to better tackle a business environment viewed as dollar currency at current exchange rate. If fully implemented in this quarter, it should have added 200 BPS to the EBIT margin to 30%. CTT generated operating cash flow of 3 million. I repeat previous communication that the reported cash flow from operations is expected to exceed EBITDA in the second half of the year. Already in July, we ex...