CTT Systems (CTT) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales declined 31% year-over-year to SEK 57 million, with EBIT margin dropping to 12% and significant FX and inventory effects impacting results.

• Strategic agreement signed with Boeing Business Jets for BBJ737MAX cabin humidification, expanding OEM partnerships and future sales opportunities.

• Installed base of humidifiers on A350s and Boeing 787s grew by 10% in 2025, supporting future aftermarket growth.

• Aftermarket and Private Jet segments saw significant revenue declines due to distributor inventory reductions and project postponements, while OEM sales increased.

• Cost savings initiatives and strategic agreements position the company for future growth.

Financial highlights

• Q4 net sales down 31% year-over-year to SEK 57 million; FX-adjusted decrease was 18–22%.

• EBIT fell to SEK 7 million from SEK 34 million; EBIT margin at 12% (14% FX-adjusted) vs. 41% prior year.

• EPS for Q4 was SEK 0.45 (down from 1.93); full-year EPS was SEK 3.08 (down from 6.82).

• Operating cash flow for Q4 was SEK -5 million, down from SEK 16 million; full-year operating cash flow was SEK 36 million, down from SEK 66 million.

• Order intake SEK 65 million (vs. SEK 81 million); backlog SEK 131 million (vs. SEK 48 million).

Outlook and guidance

• 2026 is expected to see higher OEM volumes and improved aftermarket sales as distributor inventories normalize and aircraft production ramps up.

• Q1 2026 forecasted to have higher sales quarter-on-quarter in USD, driven by improved aftermarket demand and OEM deliveries, though private jet segment to start weak.

• OEM growth rate set to accelerate in 2026/2027, with Boeing leading production ramp-up and higher shipset content on A350s.

• Aftermarket sales in 2026 expected to exceed 2025 as inventory levels normalize.

• EBIT margin targeted to gradually improve to 25% or above, supported by volume growth and cost control.