CTT Systems (CTT) ABGSC Investor Days summary

Business performance and product overview

• Net sales in 2024 decreased by 3% to SEK 300 million, with aftermarket sales declining due to high prior-year orders and OEM sales increasing slightly.

• Earnings per share dropped by 5% in 2024, but Q1 2025 saw record order intake of SEK 181 million, driven by a major retrofit order and strong OEM and VIP kit demand.

• Aftermarket accounted for SEK 233 million in 2024, with sales impacted by inventory fluctuations at distributors, but underlying demand based on flight hours remained stable.

• The installed base includes 3,000 humidifiers on 1,500 aircraft and 2,500 dehumidifiers on 1,300 aircraft, with humidifier population growth expected at 20% annually.

• Currency headwinds affected results, as most revenues are in USD and costs in SEK.

Market dynamics and growth drivers

• OEM market is the main growth engine, with high penetration on Boeing 787 and increasing rates expected for Airbus A350 in 2025–2026.

• Boeing and Airbus production ramp-ups were delayed in 2024, but both aim for higher output in 2025–2028, supporting future sales growth.

• Penetration of humidifiers per A350 is set to rise from below one to above two per aircraft by 2026.

• Private jet and VIP segments offer significant potential, with possible SEK 100–120 million annual sales if adopted by all new Global 7500s, plus retrofit opportunities.

• Retrofit market is expanding, with Jet2.com order breaking a three-year delivery drought and further deliveries scheduled through 2028.

Strategic outlook and industry risks

• OEM availability is crucial for product success; efforts are ongoing to make anti-condensation systems standard on new aircraft.

• Trade tensions and tariffs pose risks, but current impact is limited as OEMs can redirect aircraft and bear some tariff costs.

• Recession could affect retrofit sales, but core aftermarket demand is stable due to modern aircraft usage and long industry cycles.

• Investment needs are expected to remain at historical levels, with possible increases for factory expansion as production ramps up.

• Cooperation with OEMs is key for retrofit opportunities, especially for 787 and A350 programs.