CTT Systems AB (CTT) AI Stock Analysis

• Market Cap: kr1.66B
• Dividend Yield: 2.75%
• Average Volume (3M): 11.58K
• Price to Earnings (P/E): 111.4
• Beta (1Y): 0.67
• 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: kr142.00 ▼(-27.33% 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 margins & profitability

CTT’s trailing profitability remains a durable strength: very high gross and healthy net margins with a strong ROE support sustainable cash generation and pricing power. High structural margins provide a buffer through aviation cycles and underpin reinvestment and dividend capacity.

Conservative balance sheet

Very low leverage gives CTT flexibility to fund R&D, retrofit programs and aftermarket support without stress. A conservatively financed balance sheet reduces default risk in aviation downturns and enables strategic investments or targeted acquisitions when opportunities arise.

Diversified revenue streams

CTT generates revenue from OE sales, aftermarket parts and service/retrofit work tied to its installed base. This mix creates recurring aftermarket annuities and retrofit opportunities that are less correlated with new aircraft deliveries, supporting steadier long-term cash flow.

Negative Factors

Declining revenue trend

Falling top-line trends signal weaker OEM orders or reduced aftermarket demand, eroding operating leverage. Sustained revenue declines can force margin trade-offs, constrain investment in product development, and delay recovery of scale economics in the medium term.

Weakened free cash flow

A sharp drop in free cash flow reduces internal funding for capex, R&D and dividends, raising reliance on operational improvement or external financing. Persistent FCF volatility increases execution risk and limits flexibility to pursue growth or weather prolonged industry weakness.

Earnings volatility & EPS decline

Substantial EPS contraction and margin normalization reflect earnings volatility and potential mix or pricing pressure. Less predictable earnings undermine confidence in sustained dividend coverage and make capital allocation decisions harder amid cyclical aviation demand.

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 makes money primarily by selling aircraft environmental control equipment and related services into the commercial aviation value chain. Key revenue streams include: (1) Original equipment (OE) sales, where CTT supplies humidification and moisture-control systems for installation on newly manufactured aircraft, typically sold via aircraft OEM programs and their approved supplier channels; (2) Aftermarket sales, including spare parts, consumables (if applicable to installed systems), repairs, and replacement components tied to the installed base of CTT systems in service; and (3) Service and support revenues, such as maintenance/overhaul activities, technical support, and potentially service bulletins or upgrade/retrofit work when airlines add or refresh systems on in-service aircraft. Revenue is influenced by aircraft production rates (driving OE demand) and global airline utilization/maintenance cycles (driving aftermarket demand). Specific details on contract structures, pricing models, or named partnerships are null.

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	186.40M	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 136.63, above the 50-day MA of 150.08, and below the 200-day MA of 196.45, indicating a bearish trend. The MACD of -4.08 indicates Negative momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 23.78 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	kr346.43B	45.69	13.56%	0.39%	22.49%	30.47%
AVT.B	69 Neutral	kr381.80M	30.50	33.71%	1.22%	34.25%	57.77%
CTT	64 Neutral	kr1.66B	111.42	―	2.75%	-3.14%	-35.70%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAC	54 Neutral	kr853.08M	-13.95	-6.70%	―	30.82%	57.74%
MILDEF	53 Neutral	kr5.77B	37.97	10.29%	0.41%	47.87%	-439.87%
GOMX	48 Neutral	kr2.54B	-94.90	―	―	9.60%	40.86%

CTT Systems AB Corporate Events

CTT Systems Updates Nomination Committee Ahead of 2026 AGM

CTT Systems AB has announced a change in its Nomination Committee, with SEB Funds AB appointing Anette Andersson as its new representative, replacing Christian Lage Lindström. The move reflects ongoing engagement by major shareholders in CTT’s governance ahead of the company’s Annual General Meeting, scheduled for May 7, 2026, where the refreshed committee, comprising representatives from several key institutional investors, will play a central role in board nominations and oversight.

The updated Nomination Committee now includes members appointed by SEB Funds, Handelsbanken Fonder, Odin Fonder and Trulscom Förvaltning AB, underlining the strong involvement of Nordic asset managers in the company’s ownership structure. This governance adjustment may subtly influence future strategic direction and board composition at CTT, which operates in the specialized market for aircraft humidity control systems, an area tied closely to both operational efficiency and sustainability trends in aviation.

The most recent analyst rating on (SE:CTT) stock is a Hold with a SEK139.00 price target. To see the full list of analyst forecasts on CTT Systems AB stock, see the SE:CTT Stock Forecast page.

CTT Systems 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.