Interroll shares dip on subdued order growth

Published 29/01/2025, 12:02
© Reuters.

Investing.com -- Shares of Interroll Holding AG (SIX:INRN) fell by 2.3% as the company’s second-half preliminary results revealed orders and sales below consensus expectations.

The Swiss manufacturer of products for internal logistics reported that while earnings before interest and taxes (EBIT) were in line with predictions, the order book grew by a mere 6.8%, falling short of the anticipated figures due to a lack of significant project orders.

Interroll’s second-half orders rose to CHF 233 million, which was less than the market consensus of CHF 256.8 million. This increase was attributed to a stronger product business, but it did not offset the slower project business that led to a 6.8% decrease in sales to CHF 279.7 million, compared to the consensus estimate of CHF 289.7 million.

The EBIT margin for the second half was slightly below the previous year’s figure of 15.1%, suggesting an EBIT of around CHF 48 million, which aligns with market expectations.

Despite the company’s performance being in line with EBIT predictions, management’s commentary indicated a cautious outlook on the order front, citing economic and geopolitical challenges. The fundamental market drivers for Interroll remain unchanged, yet the company’s forward-looking statements reflect a bearish stance on the potential for order growth.

Analysts at Jefferies commented on the results, stating, "We remain at Hold, particularly given continued low visibility on the pickup in order momentum. We expect consensus cuts for ’25 in the high single-digit to low teens."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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