Good report. Based on the interview, I think it’s clear that the order for conductor cores came as a surprise already in the first quarter and there might be more to come, but the company doesn’t actually have visibility into this, which is understandable.
The comment regarding the reverse stock split (share consolidation) was absolute nonsense. I hope the CEO didn’t believe his own words, because otherwise, I’m worried. The unit price of a share has practically no impact on anything. No foreign investor skips an investment because of that; they skip it because the company’s liquidity is far too low for any large investor in terms of daily volume and market cap. The share price doesn’t matter if you can’t actually buy them.
Here is Aapeli’s equity research report on Exel following the Q1 results
Exel’s Q1 figures exceeded our expectations across the board. The company’s demand situation remained good, and it reiterated its guidance pointing towards significant growth and earnings improvement. Following the strong performance in the early part of the year and the favorable market situation, we raised our forecasts for the coming years. We are prepared to look further ahead at the stock’s valuation, as the report reinforced our confidence in the realization of earnings growth as volumes increase. We see the expected return formed by our forecasted earnings growth as attractive looking into next year. Consequently, we upgrade our recommendation to Accumulate (prev. Reduce) and raise our target price to EUR 10.5 (prev. EUR 8.25).
Quoted from the report:
We also raised our growth forecasts for the coming years due to the continued favorable market activity and a promising-sounding sales pipeline. Our increased growth forecasts also flowed down to the earnings lines. We also raised our long-term margin forecasts, supported by the actual development and growth forecasts. Regarding revenue, we see the greatest uncertainties relating to the volumes of the Indian factory and the timing of conductor core orders.
Recommendation: Raised to BUY (prev. Reduce).
Target price: Raised to EUR 11.00 (prev. €8.40).
Q1 result highlights
Strong growth: Revenue grew by 19% (to EUR 30.2 million), exceeding expectations. Growth was particularly strong in Industrial Solutions (+48.7%).
Improved profitability: Adjusted operating profit more than doubled to EUR 1.5 million thanks to efficiency measures and higher capacity utilization rates.
Order backlog: An order backlog of nearly EUR 100 million (€98.6 million) provides a strong backbone for future growth.
Outlook and drivers
Year 2026: The company expects revenue and earnings to grow significantly. Growth is projected to accelerate in the second half of the year (H2).
Growth sectors: Energy and the defense industry, in particular, are driving demand.
Efficiency: The growth phase of the strategy has started with momentum, and a leaner cost structure brightens the earnings outlook.
Valuation
The stock is seen as inexpensive relative to its earnings growth potential.
Although the share price has risen, the 2026 multiples (P/E 15.3x) are reasonable, and forecasted growth brings the multiples down to very attractive levels by 2028 (P/E 7.9x).
Incredible earnings day behind us All analyst reports on Exel can now be found on the investor pages under the summary table. Inderes is available in multiple languages, Danske in English, and OP in Finnish, so you’ll need to click through the widget’s language filters a bit to see the different analyses. Analyytikot ja ennusteet – Exel Sijoittajat
All analyst reports on Exel can now be found on the investor pages under the summary table. Inderes is available in multiple languages, Danske in English, and OP in Finnish, so you’ll need to click through the widget’s language filters a bit to see the different analyses.