Order beat, but revenue conversion takes time

研报英文原文证据摘录

Order beat, but revenue conversion takes time

Accessible version

Metso Corporation

Order beat, but revenue conversion takes

time

Reiterate Rating: NEUTRAL | PO: 17.20 EUR | Price: 16.86 EUR

Expectations & valuation full; rerating potential limited 27 July 2026

Metso’s Q2 organic order growth at 16% YoY beat consensus by c.800bps, supported by Equity

50% mining OE growth and continued strength in AM. Revenues and adj EBITA missed

2% as revenue conversion remains somewhat slower than previously expected. While we Tore Fangmann >>

expect continued favourable market conditions, we see limited upside to the current Research Analyst

share price as Metso already trades at c.14x EV/EBITA 2027 a c.30% premium to its own Merrill Lynch (DIFC) +971 4 425 8210

history. Additionally, we reduce our adjusted EBITA estimates by 1-2% for 2026-2028 on tore.fangmann@bofa.com

slower revenue conversion leaving us 1-2% below 2026/27 revs/adj EBITA vs cons; reit. Alexander Jones, CFA >>

Neutral. We are more constructive on peers FLS and Weir (both Buy) where we see Research Analyst

similar end market tailwinds but valuations at 10x/12x EV/EBITA 2027 respectively, a MLI+44 (UK)20 7995 5828

c.30%/15% discount to Metso and in line/c.10% discount to own 10y average. alexander.jones2@bofa.com

Benjamin Heelan >>

Research AnalystMinerals: OE surprise and continued strength in AM Merrill Lynch (DIFC)

OE order growth of 50% YoY was the main surprise driven by small and mid-sized orders +44 20 7996 5723

in the absence of large orders. Management cautioned that underlying activity in Q2 was benjamin.heelan@bofa.com

strong and can remain lumpy. Still, Metso see scope for an acceleration in large orders in Uma Samlin >>

Research Analyst

H2, which should support the company’s medium term growth outlook.