CTT Systems (CTT) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 22% year-over-year to SEK 57–57.4 million, with EBIT down 51% to SEK 15 million, mainly due to destocking, project delays, and weaker aftermarket and private jet demand.

• Aftermarket sales dominated at 76% of Q3 turnover, but were impacted by airline destocking and inventory reduction.

• OEM sales increased, but overall order intake and backlog declined, with order intake at SEK 69 million and backlog at SEK 47 million.

• Significant events included the first ACJ330neo kit order and a partnership with Airbus Corporate Jets and PMV, and an MoU with Liebherr-Aerospace for Bombardier Global 7500/8000 humidification systems.

• Anti-condensation business showed resurgence, with RFQs for retrofits on over 500 aircraft and field trials with major European low-cost carriers.

Financial highlights

• Q3 net sales fell 22% year-over-year to SEK 57–57.4 million; EBIT dropped 51% to SEK 15 million; net profit at SEK 12–12.2 million.

• Operating cash flow was SEK 8–8.1 million, down from SEK 28–28.1 million last year.

• Year-to-date net sales down 4% to SEK 218 million; EBIT down 9% to SEK 78.9–79 million; EPS at SEK 4.89.

• Rolling 12-month net sales up 1% to SEK 299–299.1 million; EBIT up 3% to SEK 111 million; EPS up 3% to SEK 7.08.

• Net debt at minus SEK 13 million; cash position at SEK 54 million; equity ratio at 73%.

Outlook and guidance

• Q4 2024 net sales expected at SEK 80–90 million, driven by aftermarket recovery and higher private jet revenues.

• Net sales guidance for July–December 2024 revised to SEK 137–147 million, down from SEK 160–180 million.

• OEM sales expected to remain flat, with higher A350 offset by fewer Boeing deliveries due to destocking.

• Q1 2025 expected to see a sharp sales jump as OEM deliveries normalize; long-term growth driven by wide-body production increases at Airbus and Boeing.

• Recovery in aftermarket and private jet sales anticipated in Q4 and 2025 as aircraft production ramps up.