The robot had already made a great summary of the results:
“Robit’s Q1 earnings report mainly fell short of analysts’ expectations”
“The company’s Q1 revenue was EUR 21.5 million, which is slightly less than the analyst’s forecast of EUR 21.2 million. The analyst had estimated revenue to decrease by 7% from the comparison period”
"Robit’s adjusted operating profit in Q1 was EUR 0.6 million, which is EUR 0.2 million below the analyst’s expectation. "
A great summary? Didn’t the figures exceed the forecasts in all respects, or am I reading different forecasts?
CEO Arto Halonen was interviewed by Aapeli.
Topics:
00:00 Introduction
00:12 Q1 Summary
01:26 Impact of currencies
03:15 Margins
04:11 Cash flow
05:56 Demand situation
07:38 Development by segments
08:57 Geographical differences in demand
10:13 Impact of import duties
14:00 Program aimed at accelerating growth
14:52 Current year’s guidance
Aapeli has prepared a new company report on Robit immediately after the Q1 results. 
Robit’s start to the year was, as expected, calm, while its earnings development exceeded our forecasts. Adjusted for currency-related factors, profitability development was cautiously positive. However, the short-term market outlook and the guidance for the current year remained unchanged, although rising geopolitical tensions have increased uncertainty related to market development. Reflecting this, we also slightly lowered our growth forecasts, while changes in earnings forecasts were absolutely more moderate. We consider the stock to be reasonably priced given the overall picture, reflecting this, we reiterate our ‘reduce’ recommendation, but lower our target price to 1.5 euros (previously 1.7 €), reflecting forecast changes and a slight increase in the required rate of return.
Quoted from the report:
Growth in working capital eroded cash flow
In the first quarter, Robit’s net cash flow from operations (incl. lease liability payments) was -2.5 MEUR (Q1’24: +0.6 MEUR), which was particularly weighed down by the change in working capital (-4.2 MEUR), reflecting the timing of larger deliveries. Correspondingly, the company’s equity ratio was 50% (Q1’24: 49%) and net gearing was 48% (Q1’24: 39%).
Aapeli has published a comprehensive report on Robit, and like other extensive reports, it is available for everyone to read.
We reiterate our Reduce recommendation for Robit, but lower our target price to 1.4 euros (previously 1.5 €) to reflect our negative forecast revisions for the coming years. Robit’s development in recent years has been hampered by the general downturn in construction, and with a cautious market sentiment, we estimate the situation will largely continue similarly this year. Instead, we expect a market recovery to propel Robit’s revenue and earnings to clearer growth in the coming years. In our view, the stock is reasonably priced in the short term when measured against this outlook, while considering the company’s subdued earnings history, it is still too early to rely on long-term potential based on thin evidence.
Quoted from the report:
In our longer-term forecasts, we estimate Robit’s growth to be supported especially by the growth of the company’s total markets, as we have assumed market shares to remain stable in the longer term. We therefore expect the company’s growth to continue in 2028–2032 at approximately the average expected market growth rate (revenue growth 2028e–2032e: 3.0–4.0%). In our assessment, significantly stronger growth than this would require either a clear market tailwind or Robit’s successful market share expansion, for which the company has not yet demonstrated successful evidence. Instead, we have set our longer-term growth forecast (incl. terminal growth) correspondingly at approximately the expected global economic growth level of 2.5%.
Miksu interviewed Aapeli about Robit regarding a comprehensive report.
The general downturn in construction combined with an uncertain market sentiment has hindered the development of Robit, which offers wear parts for drilling, and at the same time drilled down profitability. However, clearer growth is expected for the coming years if the market starts to pick up. Analyst Aapeli Pursimo shares his thoughts on the company’s situation and future outlook.
Topics:
00:00 Introduction
00:43 What are “Top Hammer” and “Down the Hole”?
01:59 Wear parts for the construction and mining industry
02:42 Continuous demand for wear parts
03:47 Epiroc and Sandvik are the biggest players in the market
05:11 Robit’s competitive advantages
07:01 Pricing power
08:01 Total market grows 3-5% annually over the cycle
10:33 Strategy
13:17 Actions to improve profitability
14:55 Forecasts
18:59 Short-term uncertainties still a challenge
Here are Aapeli’s comments on how Robit plans to reform its operating model.
With this, it will launch a global change program aimed at ensuring the company’s profitability in the short and long term. Correspondingly, the scale of the announced personnel reductions, if fully implemented, would be significant considering Robit’s size. At this stage, the timetable and impacts of the change program are still open, and it has no immediate effects on our forecasts or our view of the company.
Here are Kaisa’s comments on Robit’s latest financing agreement.
Kaisa has written comments on Robit’s profit warning.
Robit issued a profit warning yesterday, in which it lowered its outlook for both revenue and profitability. According to the company, the weaker-than-expected development was due to exchange rate developments and weak demand in the construction industry. The profit warning itself was not a huge surprise to us, but its scale was larger than anticipated. With the lowered guidance, our forecasts, especially for the current year, are subject to downward pressure, and we will update our estimates in the near future.
@Aapeli_Pursimo has prepared a preview report as the company publishes its Q2 results next Tuesday.
We reiterate Robit’s reduce recommendation, but revise our target price to 1.3 euros (previously 1.4 €). We lowered the company’s forecasts following the July profit warning, which was due to continued weak demand in construction and exchange rate developments. With our lowered forecasts, we believe the stock’s risk-adjusted return expectation remains insufficient.
Aapeli has given his comments on Robit’s change negotiations, which the company has concluded.
It’s certainly difficult for Robit.
Orders received and net sales decreased significantly. Operating profit in the red. EPS -0.06 in Q2.
Fortunately, I sold my shares some years ago. How can it be so difficult to even make a small profit? Ownership is not very meaningful unless some major change occurs, e.g., cost cutting, a stronger balance sheet after a share issue, reduced competition, or increased demand.
1.4.–30.6.2025 in brief
Orders received EUR 20.7 million (25.2), down 18.0%
Net sales EUR 19.6 million (24.6), down 20.4%
EBITDA EUR 0.4 million (1.7); 1.9% of net sales (6.8%)
Operating profit (EBIT) EUR -0.6 million (0.7); -3.1% of net sales (2.7%)
Profit for the period EUR -1.2 million (0.6); -6.2% of net sales (2.6%)
Net cash flow from operating activities EUR 1.8 million (2.0)
1.1.–30.6.2025 in brief
Orders received EUR 40.9 million (48.4), down 15.6%
Net sales EUR 41.1 million (47.4), down 13.2%
EBITDA EUR 2.0 million (3.7); 4.8% of net sales (7.9%)
Operating profit (EBIT) EUR 0.0 million (1.7); 0.1% of net sales (3.7%)
Profit for the period EUR -0.7 million (1.1); -1.8% of net sales (2.4%)
Net cash flow from operating activities EUR -0.3 million (2.8)
Equity ratio at the end of the review period 50.7% (48.6%)
Something bad, but also something (new) good. The decline will likely reverse in H2.
"
In the Australasia region, a supply agreement that ended in mid-2024 continued to weigh on sales compared to the reference period. The company succeeded in growing Down the Hole revenue in Southern Africa through active customer work. The company also won a significant mining contract in the region, with deliveries set to begin during the third quarter of the year.
"
This year seems to be the third year of declining revenue. That’s rare for a company that pushed growth really well last decade. There was probably a small dip in 2018, which quickly recovered though.
What happened to Robit’s contract in the Neom project in Saudi Arabia?
Or was there even a contract? It gave a strong boost to the stock when it was mentioned somewhere - I don’t remember anymore.
It was probably the last boost for the stock, although at the same time, some big seller’s shares also ran out.
The stock price rose, but the next earnings report was a collapse and it seems to have continued ever since.
So, what ultimately happened in Saudi Arabia?
Here is Aapeli who has made a new company report after Robit’s Q2 results.
We reiterate our Reduce recommendation for Robit and a target price of 1.3 euros. The company’s Q2 figures fell short of our expectations, partly due to a strong currency headwind that impacted the result. However, the positive development in the gross margin, which continued from Q1, was positive, and we estimate that the results of the efficiency measures taken in recent years are slowly starting to show in the figures. On the other hand, the company reiterated its recently updated guidance for the current year as expected, and uncertainty continues to be reflected in the market outlook for the construction industry. Reflecting the overall picture, forecast changes remained limited, and as a result, we see the stock’s expected return over the next 12 months being approximately at the required rate of return. However, the realization of this is dependent on a pick-up in demand, which still involves elevated uncertainty and tilts our recommendation for the stock to the cautious side.
Here, CEO Halonen has certainly done a ‘strong’ job. The mining industry has been strong all the time and civil engineering has also been at a reasonable level, excluding Finland, but still ATL
ROBIT OYJ MANAGEMENT TRANSACTIONS 12.9.2025 AT 17.00
ROBIT OYJ – MANAGEMENT TRANSACTIONS – KUUSILEHTO
Person subject to notification obligation
Name: Kuusilehto, Mikko
Position: CEO
Issuer: Robit Oyj
LEI: 743700NRL9EH2FLPH480
Nature of the notification: INITIAL NOTIFICATION
Reference number: 743700NRL9EH2FLPH480_20250912125652_7
____________________________________________
Date of transaction: 2025-09-11
Trading venue: XHEL
Instrument type: SHARE
ISIN: FI4000150016
Nature of transaction: ACQUISITION
Detailed information on the transactions
(1): Volume: 20000 Unit price: 1.1832 EUR
Aggregated information on the transactions
(1): Volume: 20000 Average price: 1.1832 EUR
Q3 report from Sandvik. Orders look good, especially in mining. Activity has been at a high level. Robit has exposure, especially in gold, where activity would presumably be very high. In infrastructure, the situation is a bit more moderate, but the CEO stated in a DI interview that things are moving in a better direction. There were nascent signs of a turnaround in Europe, but the timing of the turnaround is still unclear. It will be interesting to see Robit’s Q3 order intake. Is the worst behind us?
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