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1. Company Snapshot

1.a. Company Description

Cargotec Corporation provides cargo and load handling solutions worldwide.It operates in three segments: Kalmar, Hiab, and MacGregor.The Kalmar segment offers cargo handling equipment and automated terminal solutions, software, and services for ports, terminals, distribution centers, and various industries; ship-toshore cranes, rubbertyred and rail-mounted gantry cranes, straddle and shuttle carriers, reachstackers, empty container handlers, terminal tractors, and forklift trucks, and automated guided vehicles; and automation systems, and Bromma spreaders, as well as maintenance contracts, technical support, spare parts, training, and crane upgrade services.


The Hiab segment provides loader handling equipment under the HIAB, EFFER, and ARGOS brands; truck mounted forklifts under the MOFFETT and PRINCETON brands; forestry and recycling cranes under the LOGLIFT and JONSERED brands; hooklifts and skiploaders under the MULTILIFT brand; tail lifts under the ZEPRO, DEL, and WALTCO brands; HiConnect platform; and Hiab ProCare services and HiVision crane operating system.The MacGregor segment offers cargo and load handling solutions and maintenance services.Cargotec Corporation was incorporated in 2005 and is headquartered in Helsinki, Finland.

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1.b. Last Insights on CGCBV

Cargotec Corporation's recent performance was negatively impacted by the company's decision to spin off its Hiab business, which led to a change in its segment reporting structure. The company's financial statements review 2024 showed a decline in revenue, despite a positive book-to-bill ratio in the fourth quarter. Additionally, the company's long-term financial targets for Hiab were amended to reflect the business's standalone future. The spin-off of Hiab and the subsequent change in segment reporting structure may have contributed to the company's recent performance.

1.c. Company Highlights

2. Hiab's Q3 2025 Earnings: A Mixed Bag Amidst Market Uncertainty

Hiab's Q3 2025 financial performance was marked by a decline in sales and profitability, with revenues down 11% to EUR 346 million and comparable operating profit dropping 24% to EUR 40 million. The EPS, however, beat estimates, coming in at '0.828' relative to expectations of '0.62'. The gross profit margin was negatively impacted by lower volumes, primarily due to the decline in U.S. sales caused by trade tensions.

Publication Date: Oct -27

📋 Highlights
  • U.S. Sales Decline:: Hiab's Q3 sales dropped 11% to EUR 346 million, primarily due to elevated trade tensions and reduced order intake in the U.S.
  • Services Growth:: The Services segment achieved a 23.5% profitability rate, driven by consistent demand despite overall market challenges.
  • Cost Reduction Target:: The company plans to reduce costs by EUR 20 million by 2026 to enhance resilience against ongoing market uncertainty.
  • Order Intake Decline:: Q3 order intake fell 3% to EUR 351 million, with Equipment segment deliveries impacted by U.S. trade tensions.
  • Q4 Cautious Optimism:: Anticipated Q4 performance may align with trailing order intake trends, supported by potential U.S. Energy sector recovery and services growth.

Segment Performance

The Equipment segment saw a decline in delivery equipment orders due to trade tensions, resulting in a comparable operating profit decline to EUR 20 million. On the other hand, the Services business continued to grow, with a 23.5% profitability rate, driven by a strong order intake that follows and links nicely to revenue recognition, as noted by Scott Phillips, "The rest of the services order intake follows and links nicely to revenue recognition."

Outlook and Cost Savings

Despite the current market uncertainty, Hiab is cautiously optimistic about the outlook for Q4, expecting similar trends to Q3 but with some signs of improvement in the U.S. market, particularly in the Energy segment. To enhance resilience, the company is planning a cost savings program targeting approximately EUR 20 million lower cost level in 2026.

Valuation Metrics

With the current 'P/E Ratio' at -246.75 and 'P/S Ratio' at 1.64, it appears that the market has already priced in some of the challenges faced by Hiab. The 'EV/EBITDA' ratio stands at 5.64, suggesting a relatively reasonable valuation considering the current earnings. Additionally, the 'Dividend Yield (%)' is 6.01%, which could be attractive to income-seeking investors. Analysts estimate next year's revenue growth at 4.7%, which, if achieved, could potentially lead to a re-rating of the stock.

Trade Policies and Demand

The impact of trade policies, particularly tariffs, has been significant on Hiab's demand cycle, making it challenging for businesses to forecast forward-looking costs. The company's strategy to mitigate this includes transparently sharing tariff information with customers and applying a surcharge. The ultimate tariff depends on the components' origin, and Hiab has taken steps to reduce the tariff base by sourcing components from different places.

3. NewsRoom

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Hiab’s January–March 2025 interim report to be published on Wednesday, 30 April 2025

Apr -16

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Hiab Corporation - Managers' transactions - Lindholm

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Hiab Corporation - Managers' transactions - Wojtowicz-Tokarz

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Hiab Corporation - Managers' transactions - Jansson-Kiuru

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Hiab Corporation - Managers' transactions - Saint

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Hiab Corporation - Managers' transactions - Boxem

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Hiab Corporation - Managers' transactions - Phillips

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Hiab Corporation - Managers' transactions - Lyyski

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.11%)

6. Segments

Kalmar

Expected Growth: 7.92%

Kalmar's 7.92% growth is driven by increasing demand for eco-efficient cargo handling solutions, expansion in emerging markets, and strategic investments in digitalization and automation. Additionally, the company's focus on sustainability and decarbonization efforts, as well as its strong aftermarket services, contribute to its growth momentum.

Hiab

Expected Growth: 4.65%

Hiab's 4.65% growth is driven by increasing demand for load handling solutions in the construction and recycling industries, as well as growing adoption of sustainable and eco-friendly equipment. Additionally, Hiab's focus on innovation, digitalization, and customer-centric approach have contributed to its market share expansion.

MacGregor

Expected Growth: 4.6%

MacGregor's 4.6% growth is driven by increasing demand for cargo handling solutions, expansion in emerging markets, and strategic investments in digitalization and sustainability. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to its growth momentum.

Corporate Administration, Support Functions and Eliminations

Expected Growth: 4.5%

Cargotec Corporation's Corporate Administration, Support Functions and Eliminations segment growth of 4.5% is driven by efficient cost management, streamlined organizational structure, and strategic investments in digitalization. Additionally, the segment benefits from improved procurement practices, optimized resource allocation, and enhanced operational efficiency.

7. Detailed Products

Kalmar Container Handlers

Kalmar container handlers are designed for efficient and safe container handling in ports and terminals.

Kalmar Reachstackers

Kalmar reachstackers are designed for efficient and safe container handling in ports and terminals.

Kalmar Forklifts

Kalmar forklifts are designed for efficient and safe material handling in warehouses and distribution centers.

MacGregor Cranes

MacGregor cranes are designed for efficient and safe cargo handling on ships and in ports.

MacGregor RoRo Equipment

MacGregor RoRo equipment is designed for efficient and safe roll-on/roll-off cargo handling on ferries and RoRo ships.

Navis Terminal Operating System

Navis terminal operating system is designed to optimize terminal operations and increase efficiency.

Navis Carrier and Vessel Solutions

Navis carrier and vessel solutions are designed to optimize vessel operations and increase efficiency.

8. Cargotec Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Cargotec Corporation faces moderate threat from substitutes, as customers have limited alternatives for its cargo handling solutions.

Bargaining Power Of Customers

Cargotec Corporation's customers, such as shipping lines and terminal operators, have significant bargaining power due to their large volumes and ability to negotiate prices.

Bargaining Power Of Suppliers

Cargotec Corporation has a diverse supplier base, and its suppliers have limited bargaining power due to the company's large scale and global presence.

Threat Of New Entrants

The threat of new entrants is low for Cargotec Corporation, as the industry requires significant capital investment and technical expertise to enter the market.

Intensity Of Rivalry

The cargo handling solutions industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.09%
Debt Cost 6.46%
Equity Weight 66.91%
Equity Cost 12.05%
WACC 10.20%
Leverage 49.46%

11. Quality Control: Cargotec Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Danieli

A-Score: 5.3/10

Value: 7.0

Growth: 3.4

Quality: 5.2

Yield: 2.5

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Cargotec

A-Score: 5.2/10

Value: 6.9

Growth: 6.0

Quality: 5.9

Yield: 6.2

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Bucher

A-Score: 5.2/10

Value: 4.2

Growth: 3.4

Quality: 6.2

Yield: 5.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Sulzer

A-Score: 5.2/10

Value: 4.7

Growth: 3.8

Quality: 5.9

Yield: 6.9

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Aalberts

A-Score: 4.2/10

Value: 4.7

Growth: 3.9

Quality: 4.0

Yield: 5.6

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Trelleborg

A-Score: 4.2/10

Value: 2.6

Growth: 5.8

Quality: 6.2

Yield: 3.8

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.0$

Current Price

42$

Potential

-0.00%

Expected Cash-Flows