Cavotec order backlog hits record €160m as shore power demand surges

Cavotec's order backlog has hit an all-time high of €160 million, with third-quarter revenue up 18.9% at €42.6 million and order intake jumping 28.8% to €46.8 million. The ports, maritime and industrial systems engineer delivered the numbers alongside a still-negative bottom line: a net loss of €1.6 million for the quarter.

The gap between booming demand and thin profitability is the story here. EBIT improved to €0.8 million from a €0.5 million loss a year earlier, and adjusted EBIT reached €1 million. Operating cash flow nearly tripled, climbing to €7.8 million from €2.8 million in the same quarter last year.

What's driving the record backlog?

Chief executive David Pagels was blunt about the demand mix. "Our order backlog is at a record high of €160 million, and revenue increased by nearly 19% during the quarter, driven primarily by strong demand for shore power systems and motorised cable reels," he said.

Two deals anchored the quarter. Cavotec secured an order worth roughly €8 million for shore power systems for newbuild container ships. It also booked a €5 million contract to deliver India's first automated mooring system at Jawaharlal Nehru Port in Mumbai — a win that puts the group's automation kit into one of South Asia's busiest container gateways.

Beyond hardware contracts, the company signed an exclusive distribution agreement with EVIAS to bring its automatic ground-based charging technology to ports worldwide. That positions Cavotec in the electrification of port equipment, a segment carriers and terminal operators are funding as emissions rules tighten.

Nine-month figures confirm the acceleration. Order intake for the first nine months of 2026 rose 42.2% to €155.9 million, while revenue grew 9% to €120.1 million. The backlog is up 27.2% year on year.

Why is profitability lagging?

Management acknowledged that profitability remains below expectations, citing competitive pressure on shore power margins. In plain terms: the shore power market Cavotec is winning volume in is also the one squeezing its pricing.

Cost-cutting is the counterweight. Savings measures have delivered €0.7 million so far this year, and the company is targeting an annual run rate of €3 million by early 2027. That timeline matters — until the run rate lands, margins stay exposed to the same competitive pressure management flagged.

Pagels framed the structural case anyway. "We have a competitive offering, a record-high order backlog, and operate within attractive customer segments driven by electrification and the need for automation," he said.

What does it mean for ports and shipping?

For terminal operators and shipowners, the numbers signal where capital is moving. Shore power — connecting berthed vessels to landside electricity instead of running auxiliary engines — is becoming standard kit on newbuild container ships, as the €8 million order shows. Automated mooring, meanwhile, is spreading beyond established markets, with Jawaharlal Nehru Port now India's first adopter.

For suppliers competing in the same lane, the message is tougher: Cavotec is converting demand into a €160 million backlog while accepting thinner shore power margins to hold share. Rivals without similar scale in cable reels, mooring automation and charging will face price pressure of their own.

The forward question is conversion. A record backlog only pays when it ships at decent margin, and the €3 million cost-run-rate target by early 2027 — combined with the 42.2% nine-month order growth — suggests management sees profitability catching up with demand as electrification-driven orders roll through.

Watch the next two quarters. If EBIT momentum from the €0.8 million print continues while the backlog converts to revenue, the loss narrows. If shore power competition intensifies instead, the record €160 million book will keep telling a story the income line can't yet match.