CTT Systems AB (CTT) AI Stock Analysis

• Market Cap: kr1.73B
• Dividend Yield: 2.75%
• Average Volume (3M): 11.58K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.76
• Revenue Growth: -3.14%
• EPS Growth: -35.70%
• Country: SE
• Employees: 86
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.45
• Shares Outstanding: 12,529,443
• 10 Day Avg. Volume: 5,817
• 30 Day Avg. Volume: 11,579
• PEG Ratio: -1.18
• Price to Book (P/B): 9.53
• Price to Sales (P/S): 9.44
• P/FCF Ratio: 73.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 8.25
• Revenue Forecast (FY): kr427.00M

• Rating: 64 Neutral
• Price Target: kr148.00 ▼(-24.26% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is primarily supported by strong underlying profitability and a low-debt balance sheet, but is held back by deteriorating recent financial momentum (lower revenue/margins and weaker free cash flow) and very weak technicals (price below key moving averages and bearish momentum). Valuation is a secondary drag due to a high P/E despite a supportive dividend yield.

Positive Factors

High profitability & returns

Sustained high gross and net margins indicate durable pricing power and cost structure advantages in niche aircraft environmental systems. Strong TTM margins and solid operating profitability support long-term earnings resilience even if volumes fluctuate, underpinning cash generation potential.

Conservative balance sheet

Very low debt relative to equity gives the company financial flexibility to invest, withstand aviation cycles, and fund aftermarket/service initiatives without high refinancing risk. Conservative financing reduces solvency risk and supports shareholder returns through cycles.

Multi-channel revenue model (OE, aftermarket, services)

A mix of original-equipment contracts, aftermarket parts and service/retrofits diversifies revenue and smooths cyclicality: OE ties to production cycles while aftermarket and service generate recurring revenue from installed base, supporting steady long-term cash conversion and customer lock-in.

Negative Factors

Recent revenue decline

Slowing top-line—double-digit decline year-over-year—signals weakening demand or lost share in the near term. For a niche OEM reliant on aircraft production and airline activity, sustained revenue contractions can erode operating leverage and make reinvestment or margin recovery harder over several quarters.

Weaker free cash flow & cash conversion

A large drop in free cash flow and increased volatility raise concern about working-capital management and ability to fund growth or dividends from operations. Lower cash conversion reduces buffer for investment, makes the company more sensitive to cyclical downturns and caps strategic flexibility.

Cyclicality tied to aircraft production and utilization

Business depends materially on OEM production and airline maintenance cycles, exposing revenue and aftermarket demand to macro aviation swings. Structural cyclicality increases earnings volatility and can delay recovery in both OE orders and aftermarket revenues after industry downturns.

CTT Systems AB Business Overview & Revenue Model

Company Description

CTT Systems AB (publ) designs, manufactures, and supplies humidity control products for aircraft worldwide. The company offers humidifiers and dehumidifiers for passenger cabins, flight decks, crew rest compartments, and VIP/business jets; and active moisture control systems, as well as anti-condensation protection. It serves commercial airliners and private jets. CTT Systems AB (publ) was incorporated in 1991 and is based in Nyköping, Sweden.

How the Company Makes Money

CTT generates revenue primarily through the sale and installation of its moisture control systems in commercial and regional aircraft. The company earns money from both new aircraft manufacturers and through retrofitting existing aircraft with its technology. Key revenue streams include direct sales to aircraft manufacturers, maintenance contracts, and service agreements that provide ongoing support and upgrades for their systems. CTT has established partnerships with several leading aircraft manufacturers and airlines, which not only enhance its credibility in the market but also contribute significantly to its revenue through long-term contracts and collaborations.

CTT Systems AB Financial Statement Overview

Summary

Strong profitability and a conservatively financed balance sheet support the score (high TTM margins, low leverage, solid ROE). Offsetting this, momentum has weakened with TTM revenue down (-8.8%), margins lower versus 2024, and free cash flow down sharply year-over-year (-37.7%), raising near-term execution and cash-conversion risk.

Income Statement

Profitability remains a clear strength, with TTM (Trailing-Twelve-Months) gross and net margins still high (about 63% and 20%, respectively) and solid operating profitability. However, results have cooled from the very strong 2022–2024 period: TTM revenue declined (-8.8%) and margins stepped down meaningfully versus 2024 (when net margin was ~28%), indicating weaker volume and/or less favorable mix.

Balance Sheet

The balance sheet looks conservatively financed with low leverage (TTM debt-to-equity ~0.14) and a sizable equity base relative to debt. Returns on equity are strong (TTM ~21%), though down from the exceptionally high levels in 2023–2024, which suggests profitability normalization rather than balance-sheet stress.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months), with free cash flow covering most of net income (about 93%), supporting earnings quality. The main concern is volatility and recent weakening: free cash flow fell sharply year-over-year in TTM (-37.7%) and is well below the peak levels seen in 2023, signaling either working-capital drag, higher investment needs, or less favorable cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	264.40M	300.10M	308.90M	240.60M	151.30M
Gross Profit	55.20M	241.70M	247.70M	197.40M	118.50M
EBITDA	55.40M	119.90M	127.60M	98.90M	38.10M
Net Income	38.60M	85.50M	95.50M	66.30M	14.20M
Balance Sheet
Total Assets	355.80M	393.20M	417.30M	377.10M	328.60M
Cash, Cash Equivalents and Short-Term Investments	26.60M	68.70M	117.90M	60.10M	49.30M
Total Debt	35.50M	44.10M	41.80M	45.50M	72.20M
Total Liabilities	93.80M	102.70M	103.30M	107.80M	115.60M
Stockholders Equity	262.00M	290.50M	314.00M	269.30M	213.00M
Cash Flow
Free Cash Flow	34.00M	61.20M	109.10M	53.80M	21.70M
Operating Cash Flow	35.90M	66.30M	116.80M	61.20M	30.30M
Investing Cash Flow	-5.30M	-4.50M	-7.50M	-7.30M	-8.60M
Financing Cash Flow	-68.50M	-110.60M	-52.20M	-43.60M	6.60M

CTT Systems AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 195.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CTT, the sentiment is Negative. The current price of 195.4 is above the 20-day moving average (MA) of 139.16, above the 50-day MA of 167.77, and below the 200-day MA of 201.61, indicating a bearish trend. The MACD of -8.41 indicates Negative momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CTT.

CTT Systems AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAAB.B	70 Outperform	kr349.46B	55.53	13.56%	0.39%	22.49%	30.47%
AVT.B	69 Neutral	kr410.01M	24.45	35.19%	1.22%	34.25%	57.77%
CTT	64 Neutral	kr1.73B	44.87	―	2.75%	-3.14%	-35.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MILDEF	53 Neutral	kr6.15B	41.39	-16.38%	0.41%	47.87%	-439.87%
GOMX	49 Neutral	kr3.11B	-29.88	―	―	9.60%	40.86%
AAC	46 Neutral	kr746.09M	-13.84	-3.61%	―	30.82%	57.74%

CTT Systems AB Corporate Events

CTT Systems Hit by FX and Inventory Swings but Sees 2026 Rebound on OEM and Aftermarket Growth

CTT Systems reported a weak fourth quarter and full-year 2025, with net sales down 31% in the quarter and 12% for the year, and operating profit almost halved as currency headwinds, lower aftermarket spare-parts demand and distributor inventory reductions weighed heavily on earnings and cash flow. Despite the softer reported figures and a sharply reduced proposed dividend, management stressed that underlying volumes to end customers grew in OEM, private jet, retrofit and non-spare aftermarket segments, and that distributor inventories are now more balanced, setting the stage for higher aftermarket revenues in 2026. The company expects significantly higher OEM volumes next year as Airbus and Boeing ramp up deliveries of A350 and 787 aircraft where CTT systems are installed, while private-jet sales remain volatile but underpinned by partnerships with Airbus Corporate Jets and Boeing Business Jets and several VIP projects slated for late 2026–27. CTT warns that FX will remain a major earnings swing factor even after cost savings and USD-denominated loans, but targets a gradual recovery in margins toward 25% or more, supported by OEM growth, aftermarket normalization and potential new business in cabin humidification retrofits and additional business jet contracts.

The most recent analyst rating on (SE:CTT) stock is a Buy with a SEK172.00 price target. To see the full list of analyst forecasts on CTT Systems AB stock, see the SE:CTT Stock Forecast page.

CTT Systems Sets Date for Q4 and Full-Year 2025 Results Presentation

CTT Systems AB has announced that it will publish its interim report for the fourth quarter and full-year 2025 on 6 February 2026 at 08:00 CET, followed by a webcast presentation at 09:30 CET led by CEO Henrik Höjer and CFO Markus Berg. Investors and other stakeholders will be able to join the presentation via audiocast, with the option to ask oral questions, or via webcast, where written questions can be submitted, providing the market with an opportunity to scrutinize the company’s latest financial performance and operational development in its niche of aircraft humidity control technology.

The most recent analyst rating on (SE:CTT) stock is a Hold with a SEK186.00 price target. To see the full list of analyst forecasts on CTT Systems AB stock, see the SE:CTT Stock Forecast page.