Standard Profil - comment

Very disappointing Q3 results from Standard Profil, with revenue down 14%.  Not surprisingly, this had a larger impact on EBITDA, with EBITDA (post leases) €11m lower at €6.6m.  Cashflow benefited from some unexpected working capital movement.  

The Company highlighted the improved order book, which was up €100m in the previous quarter, but how much was related to lifetime extensions versus new contract wins? It should be noted that Standard Profil continues to spend CAPEX, with 85% of LTM Capex projects related. Two-thirds of the capex spent is deemed to be growth capex.  

Standard Profil has a strong order book with contracts with significant cost pass-throughs.  The problem is the timing of these orders, and with OEMs delaying/reducing production, time is not on Standard Profil’s side, with the RCF maturing in April 2025.  There is limited debt ahead of the RCF, leaving bondholders in the driving seat, but we wonder if bondholders want to own the company.