In This Article:
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Incap Oyj (OHEL:ICP1V) reported a revenue of 52.2 million euros for Q1 2025, which is considered a good result given the current market conditions.
-
The company achieved an EBIT margin of 11%, maintaining double-digit profitability despite a slow start to the year.
-
Incap Oyj continues to invest in technology and facilities, with significant upgrades in the US, India, UK, Slovakia, and Estonia, enhancing their production capabilities.
-
The company published its first CSRD-compliant sustainability report, highlighting its commitment to sustainability and involving 50 employees in the process.
-
Incap Oyj maintains a strong financial position with a solid net debt situation, having higher cash levels than interest-bearing debt.
Negative Points
-
The company experienced a slower start to the year, attributed to global market hesitancy due to tariffs and trade war prospects.
-
There is significant uncertainty in the market due to ongoing tariff negotiations, impacting business operations globally.
-
The visibility on market conditions remains limited, with shorter visibility windows compared to previous years.
-
Order intake numbers are not disclosed, creating uncertainty about future revenue projections.
-
The company faces challenges with fluctuating inventory levels and operational cash flow due to market conditions and supplier payment adjustments.
Q & A Highlights
Q: What was the main reason for the slow start of the year, and how are tariffs impacting Incap Oyj globally? A: The slow start was primarily due to global uncertainty around tariffs, which has caused market hesitation. The impact is not limited to Europe but is global, affecting all units. The market is waiting for clarity on the rules, and once settled, business is expected to move forward. (Respondent: CEO)
Q: Can you provide the share of your largest customer and the growth excluding this customer? A: We do not disclose the share of our largest customer publicly. However, there is not much difference from the previous year, 2024. (Respondent: CFO)
Q: What are your assumptions for the situation improving in the second half of the year? A: The assumption is based on forecasts and customer input. We expect market hesitation to settle, leading to a more normal development. We anticipate a stronger second half of the year. (Respondent: CEO)
Q: Are there further opportunities for India and the US due to the current tariff situation? A: Yes, having manufacturing in India and the US provides opportunities. India is a growing market and offers a better deal compared to China. The US manufacturing presence is beneficial in the current situation, as customers are exploring different supply chain routes. (Respondent: CEO)