CTT Systems (CTT) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked the strongest OEM quarter since Q1 2020, with robust growth despite airline challenges from high fuel prices and Middle East conflict.

• Net sales rose 22% year-over-year to MSEK 66.1, with a currency-adjusted increase of 41%.

• EBIT increased to MSEK 10 (15% margin), and EPS rose to SEK 0.53 from SEK 0.30.

• Aftermarket and OEM segments drove growth, while Private Jet revenues remained low due to project deferrals.

• Operating cash flow was negative at MSEK -9.1, mainly due to deferred customer payments and inventory build-up.

Financial highlights

• Net sales increased to MSEK 66.1 (up 22% year-over-year), with organic growth partially offset by negative FX.

• EBIT rose to MSEK 10 (15% margin, 19% adjusted for one-offs), up from MSEK 4.

• Net profit reached MSEK 6.7, and EPS was SEK 0.53.

• Operating cash flow was negative at MSEK -9.1, impacted by delayed payments and inventory build-up.

• Net debt at quarter-end was MSEK 21, with cash and equivalents at MSEK 16.

Outlook and guidance

• Q2 2026 revenue in USD expected to increase sequentially but remain below Q2 2025.

• Full-year 2026 revenues in USD expected to rise, with OEM up 45%-60% and aftermarket up 5%-15%.

• Private Jet revenues for 2026 will not exceed 2025 due to project deferrals; retrofit revenues expected to remain stable.

• OEM growth depends on Airbus and Boeing production ramp-up and higher shipset content on A350.

• EBIT margin ambition is 25%+ long-term, but Q2 margin will remain below target.