Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OEM sales doubled, driven by resumed deliveries to the Boeing 787 program.
- Record high order intake of SEK181 million, including a significant order from jet2.com.
- Backlog increased to SEK158 million, indicating strong future demand.
- The company expects a swift recovery in Q2 with net sales guidance of SEK75 million to SEK85 million.
- Strong momentum in OEM and private jet markets, with significant growth expected in 2025.
Negative Points
- Net sales dropped to SEK54 million due to halted orders from well-stocked distributors.
- Operating profit EBIT decreased significantly to SEK4 million from SEK33 million the previous year.
- Earnings per share fell sharply to SEK0.03 from SEK1.93.
- The EBIT margin dropped to 7% from 42% in the same period last year.
- The company faces potential challenges from tariffs affecting the aviation industry.
Q & A Highlights
Q: Is it correct to assume that aftermarket revenue will recover to a normal level in Q2?
A: Yes, we expect to return to normal aftermarket revenue levels in Q2, correcting our previous guidance of Q2 and Q3. – Henrik Hojer, CEO
Q: What FX rates are assumed for the Q2 guidance?
A: We are assuming the current FX rates, approximately between SEK950 million and SEK960 million, for our Q2 forecast. – Markus Berg, CFO
Q: Are there any other aspects to consider regarding currency impacts on profits?
A: Our strategy is to have as much cost as possible in US dollars, take loans in dollars, and be transparent about dollar effects. We hope the dollar impact will be smaller in Q2 than in Q1. – Markus Berg, CFO
Q: Will OEM deliveries be lower in Q2 compared to Q1, and are there any supply chain issues to consider?
A: Q2 OEM deliveries will be slightly lower than Q1, but Q1 levels are considered normal going forward. We expect fluctuations but no significant supply chain issues. – Henrik Hojer, CEO
Q: Can you clarify the increased penetration in the A350 program?
A: We have seen an uptick in crew rest and business class selections for the A350, in addition to the flight deck. – Henrik Hojer, CEO
Q: How will retrofit deliveries progress starting in Q3?
A: We will deliver five systems in Q3, with more deliveries planned for 2026 and 2027. The total will be 30 systems from Q3 to the end of 2028. – Henrik Hojer, CEO
Q: Will OEM sales levels normalize after Q2?
A: Yes, after a slightly lower level in Q2, we expect OEM sales to return to normal levels in Q3 and beyond, with potential increases due to higher production rates. – Henrik Hojer, CEO
Q: Will increased production rates lead to higher sales next year?
A: Correct, higher production rates and increased shipset content should result in higher sales levels next year. – Henrik Hojer, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
