Sweden's Gapwaves Q2 sales fall 46% on lower project revenues
Sweden's Gapwaves Q2 sales fall 46% on lower project revenues
Overview
Sweden antenna technology firm's Q2 net sales fell 46% yr/yr on lower project revenues
Company posted negative EBITDA and net income as transition to high-volume production continues
Volume production for Valeo launched in China; new development agreements signed during quarter
Outlook
Gapwaves expects production volumes to increase gradually over the next two years
Company says 2026 is a transition year with continued investment in production capacity
Company expects recurring product revenues to grow as volume production scales
Result Drivers
LOWER PROJECT REVENUES - Gapwaves said Q2 revenue decline was mainly due to lower project and production equipment revenues compared to the prior year, as last year's quarter included significant revenues from new production agreements
AUTOMOTIVE SECTOR CAUTION - Company cited continued caution around new investments in parts of the automotive industry, leading to lower project revenues
RAMP-UP COSTS - Launch and ramp-up costs for high-volume production kept costs elevated as production volumes remain limited
Company press release: ID:nMFN6bGMMX
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 13.10 mln |
|
Q2 Net Income |
| -SEK 17.90 mln |
|
Q2 EBIT |
| -SEK 18.50 mln |
|
Q2 EBITDA |
| -SEK 16.60 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Gapwaves AB is SEK20.00, about 22% above its July 16 closing price of SEK16.40
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)