Raute (RAUTE) Q4 2023 earnings summary

Executive summary

• FY2023 order intake reached a record €315M and year-end backlog a record €266M; revenue fell 8.2% to €145.4M.

• Comparable EBITDA recovered to €9.3M from €-2.3M, supported by the profitability improvement program and changed order mix.

• Four mill-sized orders totaled ~€216M; the €93M Metsä Wood LVL mill contract was the largest order in business history.

Financial highlights

• Q4 revenue was €45.2M, down 1% YoY; comparable EBITDA was €2.7M, with a 5.9% margin versus 5.8%.

• FY2023 operating profit was €1.9M versus a €14.6M loss; net income was €1.35M versus a €11.5M loss, and EPS was €0.22 versus €-2.56.

• FY reported EBITDA was €6.8M; comparable EBITDA was €9.3M, including €2.5M of items affecting comparability, mainly ERP, Russia wind-down and China factory relocation costs.

Outlook and guidance

• 2024 guidance: revenue of €170–195M and comparable EBITDA of €10–14M.

• 2028 targets include €250M net sales, Services and Analyzers at 40% of sales, average comparable EBITDA margin of 12% over the cycle and equity ratio above 40%.

• Strategy for 2024–2028 targets higher profitability and lower volatility, growth above the market, broader offerings and sustainability progress.