Overview

• Netherlands recycling systems provider's Q4 revenue fell 27% yr/yr on lower European RVM sales

• Q4 gross margin dropped to 25.1%, reflecting inventory provisions and underutilized assembly operations

• Company saw first revenues from Poland and strong bulk-feed sales in Netherlands and Sweden

Outlook

• Envipco expects to build momentum in Poland and Portugal as DRS launches progress

• Company expects robust activity in Romania, steady commercial activity in Hungary, strong sales in Netherlands

• Envipco says European revenue will mainly be new RVM sales, with service revenues to grow as installed base expands

Result Drivers

• SLOWER DEPLOYMENTS - Co said slower deployments in several existing European markets led to lower RVM sales and weaker Q4 revenue

• INVENTORY PROVISIONS & UNDERUTILIZATION - Gross margin was reduced by inventory provisions on end-of-life products and continued underutilization in assembly operations

• POLAND & BULK-FEED SALES - Initial revenues from Poland and strong bulk-feed machine sales in the Netherlands and Sweden partly offset declines

Company press release: ID:nMFN3y2pgc

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy"

• Wall Street's median 12-month price target for Envipco Holding NV is €6.50, about 41.3% above its March 10 closing price of €4.60

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)