MAX delivered mixed results for Q3 2023

, with sound top-line growth but pressure on margins. Q3 group sales rose slightly by 1.4% yoy to € 109.1m (Q3 2022: € 107.6m) while Q3 EBITDA fell sharply by 35% yoy to € 9.6m (Q3 2022: € 14.8m). Hence, the EBITDA margin declined by 4.9pp yoy to 8.8%. However, Q3 2022 was an extraordinarily strong quarter and compared to the FY 2022 EBITDA margin, the current Q3 margin is still 0.6pp higher. The postponement of some larger orders was the main reason for the margin decrease, while also burdening top-line growth. In detail:

• bdtronic grew sales by 48% yoy to € 26.0m along with a slight EBITDA margin improvement by 0.2pp to a solid 14.4%. Driven by the strong top-line growth, EBITDA rose by 50% yoy to € 3.7m. This result was carried by strong demand for bdtronics’ dispensing and trickle impregnation technology, used for the impregnation of electric motors in e-vehicles.
• Vecoplan's revenues fell by 1.8% yoy to € 46.2m, caused by the Recycling / Waste and Wood / Biomass division, which continued to fall short of expectations due to the ongoing reluctance of customers to invest. EBITDA fell by 14.5% yoy to € 5.7m, with a margin of 12.5% (Q3 2022: 14.3%).
• Amongst the other subsidiaries, AIM micro stood out positively: sales increased by c. 23% yoy to € 1.6m while EBITDA rose disproportionately by 34% up to € 0.7m, due to economies of scale.    

Q3 group order intake fell by c

. 31% yoy to € 78m, with the book-to-bill in the third quarter arriving at only 0.72x, which reflects a more cautious customer base across almost all subsidiaries. Order intake was particularly soft for Vecoplan (-23% yoy to € 38.3m), NSM + Jücker (-61% yoy to € 6.9m) and Elwema (-69% yoy to € 5.1m), reflecting macro uncertainties and order postponements. Order backlog of the continuing operations fell by c. 12% to € 267m.

MAX confirmed its FY23e guidance

of € 410m to € 470m sales (eNuw: € 444m) and € 38m to € 44m EBITDA (eNuW: € 43.9m). This appears sensible, in our view, as it implies a flat yoy top-line development and a 3.5% margin in Q4 2023 at mid-point. The due diligence for a potential divestment of MA micro is still ongoing. A successful transaction would uncover hidden value and thus serve as a major share price catalyst, in our view.

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