CTT Systems (CTT) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw solid development across OEM, private jet, and retrofit segments, with notable order wins and increased RFQs, including a record SEK 120 million order for 146 A321s from a leading European LCC.

• OEM and private jet segments gained momentum, supported by Airbus Corporate Jets partnerships and resumed Boeing 787 production.

• Aftermarket sales accounted for 75% of turnover but declined year-over-year due to strong comparables and distributor destocking.

• Cash flow and order intake declined, but the company maintained a strong financial position and stable dividend proposal.

Financial highlights

• Q4 net sales increased 1% year-over-year to SEK 82 million; EBIT rose 6% to SEK 34 million, with EBIT margin improving to 41% from 39%.

• Q4 net profit was SEK 24 million, down from SEK 27 million last year; EPS decreased 12% to SEK 1.93.

• Full-year 2024 net sales decreased 3% to SEK 300 million; EBIT down 5% to SEK 113 million, with a stable 38% EBIT margin.

• Operating cash flow for Q4 was SEK 16 million, down from SEK 30 million; FY 2024 operating cash flow was SEK 66 million, down from SEK 117 million.

• Proposed ordinary dividend of SEK 5.35 per share, totaling SEK 67 million (78% payout ratio), unchanged from last year but without the prior extra dividend.

Outlook and guidance

• Q1 2025 net sales forecast is SEK 50–60 million, a sharp drop due to distributor destocking, with recovery anticipated in Q2 and Q3 as inventories normalize.

• Aftermarket sales projected to return to or exceed 2024 levels in H2 2025, with single-digit growth for the year.

• OEM deliveries expected to increase as Boeing and Airbus ramp up production; private jet revenue to remain strong with a record pipeline.

• Weak financials seen as transitory, with swift rebound expected.