Bawat Water Technologies (BAWAT) Q1 2024 earnings summary

Executive summary

• Q1 sales lagged due to slower backlog conversion and delays in new orders, especially in the new building segment.

• Significant uplift in pipeline activity, particularly for mobile systems, with increased demand from fleet owners, ports, navies, and authorities.

• Achieved first Ballast as a Service (BAS/BaaS) jobs in Northern Europe, with successful jobs in Bremen, Denmark, and a permanent installation in Hamburg Port.

• Regulatory changes from IMO and US Coast Guard are driving demand for compliant ballast water discharge solutions.

Financial highlights

• Q1 2024 sales were SEK 4.4m, nearly flat year-over-year (Q1 2023: SEK 4.2m).

• Gross profit for Q1 2024 was SEK 0.8m, down from SEK 0.9m in Q1 2023; gross margin at 18.6%.

• EBITDA for Q1 2024 was SEK -5.8m, an improvement from SEK -6.7m in Q1 2023.

• Guidance maintained for full-year sales between SEK 42 million and SEK 54 million.

• Cash at end of Q1 2024 was SEK 2.1m; net interest-bearing debt at SEK 47.3m.

Outlook and guidance

• Full-year sales guidance remains unchanged at SEK 42–54m, supported by a strong pipeline and increased activity in mobile systems and BAS.

• EBITDA for 2024 expected between SEK -12m and -7m, with break-even targeted in Q4.

• Expectation of recurring revenue from BAS, especially as permanent installations in ports like Hamburg attract regular customers.

• Anticipation of presence in more Northern European ports by year-end.