Preparing for the metrology inflection

PVA TePla (PVA) reported final FY24 results that were in line with the preliminary numbers reported on 12 February, with revenue of €270m and EBITDA of €48m. Although fresh FY25 EBITDA guidance implies a structurally and significantly higher opex level, we see this as supportive of the investment case as it enables a higher service level and increased sales effort, as well as increased R&D. The coming years should see rapidly increasing revenues from high-volume clients in the metrology division, which should support the top line, margins and the share price. PVA’s valuation appears undemanding compared to peers and our discounted cash flow.