RTX (RTX) Q3 23/24 earnings summary

Executive summary

• Q3 revenue increased to DKK 142 million, slightly above revised guidance after a downgrade earlier in the year, driven by late-quarter shipments, but order intake remains below original guidance and visibility is limited.

• Gross margin improved sequentially due to supply chain normalization and higher revenue, with cost control measures keeping fixed costs flat.

• EBITDA for Q3 was DKK 9 million, reflecting positive trends but still below target and down from DKK 14 million year-over-year.

• Management revised full-year outlook downward in June due to postponed orders and lower demand, especially in ProAudio and Enterprise segments.

Financial highlights

• Q3 2023/24 revenue: DKK 142 million (down 16% YoY); 9M revenue: DKK 349 million (down 37% YoY).

• Q3 EBITDA: DKK 9 million (down from DKK 14 million YoY); 9M EBITDA: DKK -20 million (down from DKK 64 million YoY).

• Inventory reduced by DKK 9 million in Q3 and DKK 11 million over nine months, with no obsolete inventory risks.

• Net liquidity improved by DKK 13 million in Q3, but down DKK 37 million for the nine months, impacted by negative EBITDA and reduced working capital.

• Cash position at end of Q3 was DKK 100 million, up from DKK 91 million year-over-year.

Outlook and guidance

• Full-year 2023/24 revenue expected at DKK 500–510 million (previously DKK 580–630 million); EBITDA at DKK 0–10 million (previously DKK 45–60 million); EBIT at DKK -40 to -30 million (previously DKK 5–20 million).

• No new guidance for next year until the annual report; visibility remains low with customer forecasts limited to 3–6 months.

• Normalization of customer inventory and demand expected over the next 12 months, but timing remains uncertain.

• Majority of revenue to come from existing products; up to 20% from new launches.

• Gross margin expected to improve sequentially but remain below last year due to lower revenue.