Overview
Finland sustainable tech provider's Q1 sales rose 3% yr/yr, adjusted EBITA up 5%
Orders received for Q1 grew 6%, driven by Aggregates and major Minerals equipment order
Cash flow from operations fell sharply due to inventory build-up and delivery timing
Outlook
Metso expects market activity in Minerals and Aggregates to remain at the current level
Company says geopolitical turbulence could affect global economic growth and market activity
Metso cites strong order book and broad customer base as supporting its outlook
Result Drivers
ORDER GROWTH - Orders received rose 6%, driven by strong Aggregates demand and a major Minerals equipment order for a copper mine in Peru
EFFICIENCY MEASURES - Adjusted EBITA margin improved, supported by operational leverage and internal efficiency measures
CASH FLOW IMPACT - Cash flow from operations declined mainly due to inventory build-up and timing of Minerals equipment deliveries
Company press release: ID:nWkrbzYcLS
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
EUR 1.25 bln
Q1 EPS
EUR 0.14
Q1 Adjusted EBITA
EUR 203 mln
Q1 EBIT
EUR 165 mln
Q1 Orders
EUR 1.56 bln
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."
Wall Street's median 12-month price target for Metso Oyj is €17.25, about 9.7% above its April 21 closing price of €15.73
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)