AutoStore Holdings Reports Significant Revenue Decline

AutoStore Holdings sees a steep revenue drop of 37.8% YoY to $85.9M, reflecting lower orders. Despite this setback, the CEO maintains confidence in growth potential through automation advancements.

Date: 24-04-2025

AI Rating: 4

Revenue Decline and Adjusted EBITDA Challenges
AutoStore Holdings Ltd. has reported a significant decrease in revenue for the first quarter of 2025, down 37.8% year-over-year to $85.9 million from $138.1 million. This decline was partly attributed to lower order intake, which fell 22.8% compared to the previous year at $141.2 million. Such a decrease raises concerns about the company's market position in a competitive environment.

Adjusted EBITDA also saw a dramatic downturn, decreasing 66.7% to $21.1 million from $63.2 million in the prior year. The adjusted EBITDA margin reduced significantly from 45.7% to 24.5%, indicating reduced profitability stemming from lower revenue, which is alarming for investors. This drops AutoStore's earnings potential, which could deter potential and existing investors in the short term.

Market Outlook
Despite the adverse results, CEO Mats Hovland Vikse voiced optimism regarding the long-term prospects of warehouse automation. This confidence in future capabilities may mitigate some concerns among investors. The company highlighted its extensive customer base of approximately 1,150 and around 1,700 installations, suggesting existing market strength could be leveraged for recovery and growth. However, caution is warranted, as the report notes that overall uncertainty in global commerce continues to impact future order intake.

In summary, while the current financial metrics reveal significant challenges, AutoStore's potential strategic advantages and market strengths could provide a path towards recovery, assuming the company successfully capitalizes on these strengths amidst prevailing uncertainties.

Stocks: AUTO.OL