Basler stock jumps after strong order intake and raised guidance

Published 07/08/2025, 09:48
Basler stock jumps after strong order intake and raised guidance

Investing.com -- Basler shares rose 7% following a sequentially improved order intake in the second quarter and raised full-year guidance, despite ongoing market challenges.

The company reported an order intake of €61.2 million in the second quarter, bringing the book-to-bill ratio to 1.2x compared to 0.9x in the first quarter. This strong recovery in the first half prompted management to raise its fiscal year 2025 guidance to €8.3 million in earnings before taxes (EBT) at the midpoint, approximately 30% above the previous consensus of €6.4 million. The company also forecasts sales to be 7% higher than consensus expectations.

Second quarter revenues came in at €52.2 million, 12% lower sequentially following an exceptionally strong first quarter that benefited from spillover effects of major year-end orders. The company noted that strong order income in June should provide a positive start to the typically weaker third quarter.

Gross margin declined to 46.2% in the second quarter, down 195 basis points YoY and 192 basis points quarter-over-quarter, partly due to higher U.S. tariffs. Combined with lower revenues, this caused the EBT margin to decrease from 10.0% in the first quarter to 3.6% in the second quarter.

Despite achieving €7.9 million in EBT during the first half, the midpoint of Basler’s new full-year EBT guidance (€8.3 million) suggests minimal profits for the remainder of 2025. Management expects the market environment to remain challenging in the coming months due to political uncertainties, trade headwinds, and negative foreign exchange effects.

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