Raute (RAUTE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong profitability, with net sales up 36.2% year-over-year to EUR 46.4 million and a record comparable EBITDA margin of 13.5%, exceeding long-term targets since the new strategy launch.

• Services business delivered another strong quarter, Wood Processing showed solid execution, while Analyzers faced headwinds from low order intake.

• Market environment remained challenging, with customers postponing investments into 2025, but a robust order book provides a buffer.

• Raised 2024 guidance for net sales and comparable EBITDA due to better-than-expected project deliveries and services performance.

• Strategic focus remains on growth, digitalization, and sustainability in engineered wood products.

Financial highlights

• Q3 2024 net sales: EUR 46.4 million (up 36.2% year-over-year); Q3 comparable EBITDA: EUR 6.3 million (13.5% margin).

• Q3 EPS: EUR 0.73 (up 356% year-over-year); Q3 operating cash flow: EUR 18.8 million, supported by positive change in net working capital.

• Order intake for Q3: EUR 15 million (EUR 19 million prior year), with Services as the main contributor; order book at period end: EUR 186 million.

• 9M 2024 net sales: EUR 148.1 million (up 47.8%); 9M comparable EBITDA: EUR 14.7 million (9.9% margin).

• 9M operating profit: EUR 10.2 million; 9M EPS: EUR 1.48.

Outlook and guidance

• 2024 net sales expected between EUR 190–210 million; comparable EBITDA between EUR 17–21 million.

• Guidance raised due to strong order backlog and better-than-anticipated project deliveries and services.

• Market recovery in construction-related end-user products postponed to 2025; hardwood plywood and LVL demand stable.

• EU sanctions on Russian birch plywood support European market demand.