Vaisala delivered very strong figures for Q2/24 as our estimates were topped on both net sales and EBIT. With the strong performance, the lower ranges of the guidance were increased for both net sales and EBIT.
Vaisala’s delivered very strong figures for Q2/24 as our estimates were topped on both net sales and EBIT. With the strong performance, the lower ranges of the guidance were increased for both net sales and EBIT.
Q2 group result: Orders increased 14% y/y while the order book stood at EUR 196.9m, growing 18% compared to last year. Group net sales increased by 13% to EUR 148.4m, topping our estimate of EUR 134.4m by a wide margin. Gross margin was on a strong level at 57.0% (55.1% Q2/23). EBIT amounted to EUR 23.7m (15.4/15.4m Evli/cons.), reflecting a margin of 15.9% (9.1%). The strong margin was driven by improved gross margin and continued successful cost consciousness.
Industrial measurements (IM): Orders increased by 8% y/y while order book declined to EUR 36.3m (-2%). Net sales were at EUR 56.5m, growing 7% y/y Net sales increased in power and energy as well as in life science market segments and very strongly in power and energy. Service sales grew 43% y/y driven by growth in installed base from last year. IM gross margin jumped to 64.0% (59.7%) and EBIT to EUR 12.3m with a margin of 21.7% (Q2/23 EUR 6.8m, 12.9%).
Weather and Environment (W&E): Orders received increased by 18% (FX 19%) y/y while order book was up by 23% y/y. W&E’s net sales increased by 18% (FX 16%) to EUR 91.9m. Service and project sales grew strongly in the quarter. Net sales grew in all market segments, very strongly in aviation and roads market segments. Gross margin improved to 52.7% (Q2/23 51.9%).
Outlook 2024 (estimate ranges specified): New: Net sales EUR 540-570m and EBIT EUR 68-78m. Previously: Net sales EUR 530-570m and EBIT EUR 63-78m. Our current estimate: Net sales EUR 546m and EBIT at EUR 70m, both at the lower range of the updated guidance.
Evli Research Aleksanterinkatu 19 A, 4th floor P.O. Box 1081, 00101 Helsinki
Name(s) of the analyst(s): Jortikka
This research report has been prepared by Evli Research Partners Plc (“ERP” or “Evli Research”). ERP is a subsidiary of Evli Plc. Production of the investment recommendation has been concluded on 23.7.2024, 8:30. This report has been published on 25.7.2024, 9:40.
None of the analysts contributing to this report, persons under their guardianship or corporations under their control have a position in the shares of the company or related securities.
The date and time for any price of financial instruments mentioned in the recommendation refer to the previous trading day’s closing price(s) unless otherwise stated in the report.
Each analyst responsible for the content of this report assures that the expressed views accurately reflect the personal views of each analyst on the covered companies and securities. Each analyst assures that (s)he has not been, nor are or will be, receiving direct or indirect compensation related to the specific recommendations or views contained in this report.
Companies in the Evli Group, affiliates or staff of companies in the Evli Group, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.
Neither ERP nor any company within the Evli Group have managed or co-managed a public offering of the company’s securities during the last 12 months prior to, received compensation for investment banking services from the company during the last 12 months prior to the publication of the research report.
ERP has signed an agreement with the issuer of the financial instruments mentioned in the recommendation, which includes production of research reports. This assignment has a limited economic and financial impact on ERP and/or Evli. Under the assignment ERP performs services including, but not limited to, arranging investor meetings or –events, investor relations communication advisory and production of research material.
ERP or another company within the Evli Group does not have an agreement with the company to perform market making or liquidity providing services.
For the prevention and avoidance of conflicts of interests with respect to this report, there is an information barrier (Chinese wall) between Investment Research and Corporate Finance units concerning unpublished investment banking services to the company. The remuneration of the analyst(s) is not tied directly or indirectly to investment banking transactions or other services performed by Evli Plc or any company within Evli Group.
This report has not been disclosed to the company prior to its dissemination.
This report is provided and intended for informational purposes only and may not be used or considered under any circumstances as an offer to sell or buy any securities or as advice to trade any securities.
This report is based on sources ERP considers to be correct and reliable. The sources include information providers Reuters and Bloomberg, stock-exchange releases from the companies and other company news, Statistics Finland and articles in newspapers and magazines. However, ERP does not guarantee the materialization, correctness, accuracy or completeness of the information, opinions, estimates or forecasts expressed or implied in the report. In addition, circumstantial changes may have an influence on opinions and estimates presented in this report. The opinions and estimates presented are valid at the moment of their publication and they can be changed without a separate announcement. Neither ERP nor any company within the Evli Group are responsible for amending, correcting or updating any information, opinions or estimates contained in this report. Neither ERP nor any company within the Evli Group will compensate any direct or consequential loss caused by or derived from the use of the information represented in this publication.
All information published in this report is for the original recipient’s private and internal use only. ERP reserves all rights to the report. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in any retrieval system of any nature, without the written permission of ERP.
This report or its copy may not be published or distributed in Australia, Canada, Hong Kong, Japan, New Zealand, Singapore or South Africa. The publication or distribution of this report in certain other jurisdictions may also be restricted by law. Persons into whose possession this report comes are required to inform themselves about and to observe any such restrictions.
Evli Plc is not registered as a broker-dealer with the U. S. Securities and Exchange Commission (“SEC”), and it and its analysts are not subject to SEC rules on securities analysts’ certification as to the currency of their views reflected in the research report. Evli is not a member of the Financial Industry Regulatory Authority (“FINRA”). It and its securities analysts are not subject to FINRA’s rules on Communications with the Public and Research Analysts and Research Reports and the attendant requirements for fairness, balance and disclosure of potential conflicts of interest. This research report is only being offered in U.S. by Auerbach Grayson & Company, LLC (Auerbach Grayson) to Major U.S. Institutional Investors and is not available to, and should not be used by, any U.S. person or entity that is not a Major U.S. Institutional Investor. Auerbach Grayson is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of the FINRA. U.S. entities seeking more information about any of the issuers or securities discussed in this report should contact Auerbach Grayson. The securities of non-U.S. issuers may not be registered with or subject to SEC reporting and other requirements.
ERP is not a supervised entity but its parent company Evli Plc is supervised by the Finnish Financial Supervision Authority.
Evli Plc Aleksanterinkatu 19, 4th fl P.O. Box 1081 FI-00101 Helsinki Finland
Address source: Evli's client and marketing register