Interpump slips after results, Equita cuts profitability estimates

(Il Sole 24 Ore Radiocor) - A session to forget for Interpump Group , which slipped to the tail of the Ftse FTSE MIB . The share price paid for the accounts which, for the first nine months of the year, showed net sales of EUR 1.58 billion (-7.7% compared to the first nine months of 2023, -9.4% on an organic basis), an Ebitda of EUR 363.5 million (-14.6%) and a consolidated net profit of EUR 180.4 million (-25%). Furthermore, the company expects a slowdown in revenues for the full year, albeit not marked: "In the absence of unlikely short-term changes in the scenarios, we expect, on an organic basis, a slight contraction in turnover in the order of a 'high single digit' while ebitda should maintain excellent values in the area between 22.5% and 23% of turnover," as the executive chairman, Fulvio Montipò, said, speaking of "a general picture of complexity in the first part of the year unchanged in several markets of the Oil division, while the comforting evolution of the Water division allows an improvement in the result".

According to Intermonte's experts, the third quarter results 'were slightly below expectations'. In particular, 'Hydraulics performed weaker, while Water Jetting showed significant growth. Despite this, free cash flow showed an improving trend quarter-on-quarter, coming in line with consensus estimates'. Equita's experts, on the other hand, speak of a solid Fcf and, in general, of results that 'confirm the group's ability to protect margins (Ebitda margin -170 basis points to 22.6%) despite the weak performance of Hydraulics'.

As for the outlook, profitability has been revised slightly downwards in 2024, while no quantitative guidance has been given on 2025 due to the current poor visibility. "We revise our estimates slightly, to incorporate lower profitability in 2024 and weaker organic growth in Hydraulics for 2025," Intermonte explains. Equita, which nevertheless confirms its 'buy' rating precisely 'in light of the strong defence of margins and the weakening of headwinds in the main end markets', also points out that it has nevertheless 'made marginal changes to our estimates (less than 1% earnings per share) mainly to reflect a slightly different divisional mix (organic top-line in Hydraulics from -13% to -13.8%, water jetting from +2% to +4% in 2024). For 2025 we confirm our forecast of a moderate organic top-line rebound."