Ernst Russ AG: Solid Performance in Volatile Markets

Ernst Russ AG has shown resilience amidst volatile shipping markets, according to a recent Quirin Privatbank report. Despite a 13% year-over-year revenue decrease to EUR 40.9 million in Q1 2025, the company's earnings before interest and taxes (EBIT) stood at EUR 40.3 million. Factors contributing to this performance include the sale of vessels and a North Sea collision affecting its fleet.

Charter rates have adjusted, decreasing by USD 1,256 per day year-over-year to USD 16,883. Nonetheless, Ernst Russ secured nine new contracts in Q1 2025 with an average rate above USD 18,000. Total sales for fiscal year 2025 are projected to reach EUR 157 million, with EBIT expected to grow by 28% to EUR 91 million.

With an equity ratio of 80.4% and a robust net cash position, Ernst Russ is valued below international peers. Quirin Privatbank maintains a "Buy" recommendation, setting a target price at EUR 10.00 per share based on its discounted cash flow model.