CTT Systems (CTT) Q1 2025 earnings summary

Executive summary

• OEM sales doubled year-over-year and quarter-to-quarter, driven by resumed Boeing 787 deliveries and strong order intake, including a record SEK 181 million in new orders and a major Jet2.com retrofit contract.

• Q1 net sales dropped to SEK 54 million, a 31% decrease year-over-year, mainly due to high distributor inventories and postponed private jet deliveries, resulting in a temporary aftermarket sales dip.

• Operating profit (EBIT) fell to SEK 3.9 million from SEK 32.6 million year-over-year, with EBIT margin at 7% versus 42%.

• Aftermarket demand remained stable, with inventory normalization expected to drive a swift sales rebound in Q2.

• Net profit was SEK 3.7 million, down from SEK 24.5 million, and EPS fell to SEK 0.30 from SEK 1.96.

Financial highlights

• Net sales: SEK 54 million (down 31% year-over-year, currency adjusted -33%).

• EBIT: SEK 3.9 million (down from SEK 32.6 million), EBIT margin 7% (42%).

• Operating cash flow: SEK 4 million, down from SEK 26 million year-over-year.

• Order intake reached SEK 181 million, up from SEK 66 million; backlog increased to SEK 158 million.

• Cash and cash equivalents: SEK 69 million; equity ratio: 73%.

Outlook and guidance

• Q2 net sales guidance is SEK 75–85 million, with a swift recovery expected as distributor inventories normalize and private jet deliveries resume.

• Aftermarket sales projected to return to normal in Q2, with single-digit growth in 2025.

• OEM business outlook is strong, supported by Airbus and Boeing production ramp-ups, with quarter-to-quarter variability.

• Private jet segment set for strong revival in 2025, with first retrofit deliveries in years and a record-high VIP pipeline.

• Retrofit deliveries to start in Q3 2025, with significant Jet2.com order spanning 2025–2035.