CTT Systems (CTT) Q3 2025 earnings summary

Executive summary

• System sales surged 80% year-to-date, with strong Q3 momentum and major retrofit deliveries, including a 146-unit order for Jet2.com.

• Letter of intent signed with Boeing Business Jets to offer cabin humidification as standard, and OEM partnership with Liebherr Aerospace for the COMAC C929 program.

• Q3 net sales rose 29% year-over-year to MSEK 74, with strong growth in Private Jet, OEM, and retrofit segments.

• Operating profit (EBIT) increased to MSEK 19, with a 25% margin; EPS was SEK 1.15.

• Operating cash flow surged to MSEK 33, exceeding EBITDA, driven by positive working capital changes.

Financial highlights

• Q3 net sales increased 29% year-over-year to MSEK 74; at fixed FX, up 39%.

• EBIT margin in Q3 was 25% (down from 26% last year); EPS increased to SEK 1.15.

• Operating cash flow for Jan–Sep was MSEK 40.8, with cash and equivalents at MSEK 34.8 as of September 30.

• Year-to-date 2025 net sales decreased 5% to MSEK 208, EBIT dropped 49% to MSEK 41, and EPS fell 46% to 2.63 SEK.

• Order intake SEK 48 million (down from SEK 69 million); backlog SEK 129 million (up from SEK 47 million).

Outlook and guidance

• No specific guidance for Q4 due to currency volatility, shorter lead times, and changing distributor behavior.

• Aftermarket sales expected to recover in 2026, with installed base of humidifiers projected to grow over 20% per year as Airbus and Boeing ramp up production.

• OEM order momentum expected to pick up end-2025/early 2026, with a strong outlook for 2026/2027.

• Margins and profit expected to improve in 2026, driven by higher sales and cost reductions.

• Private jet segment establishing a higher net sales baseline, driven by increased penetration in narrowbody VIPs.