Avtech reports 16% fall in third-quarter net sales

what happened

According to Newsmetry API, Swedish air traffic management technology company Avtech preliminarily reported a 16% year-on-year decline in third-quarter net sales to 10.30 million Swedish crowns. The company attributed the result to lower utilization of its solutions by a major customer. Preliminary net income fell 40% to 3.10 million crowns, affected by weaker revenue and investments in sales, customer onboarding and product development. EBITDA was 4.30 million crowns.

Avtech’s cash flow improved with help from EU project grants and payments from overdue customer accounts. The company said the timing of customer decisions remains difficult to forecast, while its commercial pipeline entering 2027 is broader and more active. Lower usage by the major customer reduced recurring revenue during the quarter.

Analysts’ median 12-month price target for Avtech Sweden AB (publ) is 6.60 crowns, around 112.2% above the stock’s October 12 close of 3.11 crowns. The shares recently traded at seven times estimated earnings for the next 12 months, versus a multiple of 14 three months earlier. Reuters-related reads on October 12 covered Karnell’s preliminary sales increase amid strong demand and Telia’s plan to cut about 900 jobs and save $100 million.

why it matters

The report highlights Avtech’s exposure to usage by major customers, the near-term earnings cost of planned investment and stronger cash flow supported by EU grants and overdue payments.

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