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Investing.com -- Interroll on Thursday reported mixed first-half 2025 results, missing analyst expectations across key metrics while management pointed to early signs of recovery in larger projects.
The company’s order intake declined 0.8% year-over-year to CHF284 million, falling short of consensus estimates of CHF293.1 million, though orders improved 22% quarter-over-quarter.
The book-to-bill ratio stood at 1.15x, with sales impacted by low order intake in the second half of 2024.
Revenue for the first half remained nearly flat, increasing just 0.1% year-over-year to CHF247.7 million, below analyst expectations of CHF253.8 million.
EBIT fell 7.7% to CHF27.6 million, missing the consensus of CHF33.8 million, while net profit dropped 11.3% to CHF21.2 million compared to estimates of CHF26.6 million.
The pallet handling solutions segment showed strong performance with 38% growth to CHF25.4 million, and rollers increased 4.1% to CHF55.3 million.
However, these gains were offset by declines in conveyors & sorters, which fell 7.3% to CHF76.4 million, and drives, which decreased 3.1% to CHF90.6 million.
EBIT margin contracted to 11.1% from 12.1% in the first half of 2024, with the company attributing the weaker profitability to lower sales and targeted investments in research and development and sales and marketing.
Free cash flow improved to CHF17.1 million from CHF11.1 million in the same period last year, exceeding analyst expectations of CHF15 million, helped by working capital management.
Management noted an initial improvement in orders during the first half, primarily driven by increased projects in the Middle East and North America.
However, the company maintained its cautious outlook, citing continued delays due to heightened market uncertainty while acknowledging signs of market stabilization and growing demand for large orders in the project business.
Jefferies analysts currently expect Interroll’s full-year 2025 orders to increase by 5.7% to CHF549 million.
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