Q3 2024 CTT Systems AB Earnings Call Transcript
Key Points
- CTT Systems AB (LTS:0GUO) received its first order for an ACJ330neo kit system, marking progress in the VIP sector.
- The company signed an MOU with Liebherr Aerospace to offer humidification systems for Bombardier's Global 7500/8000, advancing in the business jet market.
- There is a resurgence in the anti-condensation business, with potential retrofit orders for over 500 aircraft.
- Despite a decrease in net sales, OEM sales increased by $5 million, indicating strong demand in that segment.
- CTT Systems AB maintains a strong financial position with a net cash status and an equity ratio of 73%.
- Net sales decreased by 22% year-on-year, primarily due to pushed orders and transitory destocking in the aftermarket.
- Operating profit (EBIT) decreased by 51% year-on-year, reflecting a significant drop in profitability.
- Aftermarket sales dropped by SEK13 million, and private jet sales declined by 87%, impacting overall revenue.
- The order backlog decreased by SEK32 million to SEK47 million, indicating a low level of future orders.
- The company faces competition in the aftermarket, with some airlines switching to competitors due to pricing.
Good morning. Welcome to CTT's quarterly earnings call. I'm Henrik Hojer, and with me is Markus Berg. We will present our financials for Q3 and then look at our outlook going forward. Before going into financials, I would like to mention three business highlights in the quarter.
First, we continue to make progress in VIP. We received the first order for an ACJ330neo kit system. CTT started the development together with Airbus Corporate Jets and PMV in October. Second, we are moving forward on business jet. We signed an MOU with Liebherr Aerospace, and we are now finalizing the joint offering of CTT's humidification system to Bombardier for the Global 7500/8000.
Third, we see a resurgence in anti-condensation business. Our market activities in the anti-condensation is starting to pay off. CTT sent out responses to RFQs in Q3 and Q4 with a total potential of retrofit order for more than 500 aircraft. This is the highest level in year. If looking at the numbers, sales dropped in Q3 sharply due to pushed orders and transitory destocking
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