Petri has written a company report on Boreo, which offered a pleasant surprise. 
Boreo’s Q4 figures clearly exceeded our forecasts, as high revenue accumulation flowed into the result with profitability roughly in line with expectations. In our estimation, the Q4 figures partly reflected timing-related factors, although order books have generally increased compared to before. We have made positive forecast changes for the coming years, and in addition, a strong Q4 cash flow reinforced our expectations that the company will navigate through a tight financial situation unscathed. Reflecting these, we raise our target price to 12.5 euros (previously 11.50 euros), but in a 12-month horizon, aligning with a neutral valuation view, we lower our recommendation to reduce (previously add). Boreo’s CEO’s Q4 interview can be viewed from this link.
Quoted from the report:
Cash flow now rolled in the right direction
Business cash flow for 2024 reached EUR 12 million, and thus free cash flow (incl. lease payments and the impact of the hybrid), considering organic investments, settled at EUR 5.4 million. The free cash flow was supported by the company’s successful efforts to release working capital. Against this background, the company’s net debt was EUR 30 million (excluding EUR 24 million in hybrids) and corresponded to 2.8x the EBITDA of the previous 12 months. In the short term, the company estimates that its working capital will tie up a few million euros, and in addition, the repayment of the old hybrid, along with other debt repayments, is scheduled for the beginning of the year. However, the company’s liquidity situation allows for this, and thus, regarding its financial position, Q4 was somewhat reassuring.