Good morning, and welcome to CTT earnings call quarter two. Next slide, please. I'm Henrik Höjer, and together with Markus Berg, we will present the results of the second quarter. Let's go directly into our report and slide number four, please. Business highlight of the past three months was that the aftermarket continued to grow more than we expected and now is restored to the 2019 levels. CTT and Airbus Corporate Jets further developed our partnership, signing a business agreement for optional in-flight humidification for ACJ, and they promote humidification to obtain the best climate in their aircraft. The proposed system marketed by ACJ are the bolt-on kit we have developed together. We also experienced that the business environment improved when we, for the first time in three years, visited the Aircraft Interiors Expo in Hamburg.
As usual, you don't sell anything at exhibitions, but we generated a long list of opportunities that we are now following up on, and we try to convert into sales. Next slide, number five, please. In quarter two, we saw a strong growth of sales and profit. Our EBIT margin was the highest since quarter three in 2019. Net sales reached SEK 58 million and increased with 56%. EBIT was SEK 23 million, giving an EBIT margin of 40%. Earnings per share was SEK 1.21, and we generated an operating cash flow of SEK 4 million. Next slide, number six, please. The increase in net sales was driven by the aftermarket sales recovery and private jet growth. The aftermarket increased SEK 16 million and private jet rebounded as expected and was up SEK 6 million.
Retrofit stayed on the same level as previous years, and OEM is now on a record low. As you can see on the market mix, this quarter was dominated by aftermarket sales, but with a good comeback in private jet. Next slide, number seven. Order intake and backlog decreased in the period. Gross order intake was SEK 44 million compared to SEK 52 million the same period last year. This is mainly explained by a record low build rate by Boeing on the 787 program and aftermarket sales dominating our revenue with short lead times from order to delivery, meaning that order and delivery can be in the same quarter. We at CTT can see that the Russian market will return in the foreseeable future. As a consequence of that, we have this quarter canceled all our orders from the Russian market, booked at the value of SEK 14 million.
This leads to an order backlog of SEK 52 million. I now hand over to Markus, and the next slide, number eight, please.
Thank you, Henrik. EBIT profit bridge, adjusted for items affecting comparability, EBIT in the Q2 last year was SEK 2 million. Increased EBIT in the second quarter 2022 is driven by the following factors. The main reason for our increased EBIT is business-driven with SEK 11 million from higher sales volume and SEK 3 million primarily from higher aftermarket share. CTT is profiting a lot from stronger U.S. dollar compared to SEK with approximately SEK 9 million this quarter. Given this, EBIT increased to SEK 23 million in the quarter. Let's move on to the next slide, number nine. Cash flow. Operating cash flow amounted to SEK 4 million, driven by improved financial performance, EBITDA, but partly offset by negative working capital. Working capital is higher, mainly due to increased accounts receivable from higher sales and some large payments sliding into the third quarter.
Dividend of SEK 10 million or SEK 0.79 per share has been paid to shareholders in the second quarter. Given this, net debt now amounting to SEK 30 million compared to SEK 45 million in Q2 last year. Let's go to the next slide, number 10, and then directly move to slide 11 for the accumulated numbers January to June. Accumulated net sales amounted to SEK 108 million, an increase of 56% from SEK 69 million last year. Adjusted for currency effects, an increase of 39%, mainly driven by the recovering aftermarkets. January to June, EBIT increased to SEK 38 million compared to SEK 7 million last year. Earnings per share increased to SEK 1.97 from SEK 0.23 last year. Let's continue to the next slide, number 12. Accumulated cash flow.
Operating cash flow amounted to SEK 13 million compared to zero last year, driven by improved financial performance, but partly offset by negative working capital, as mentioned before. Increased inventory, mainly in the first quarter, also affecting working capital negatively. Again, CTT accepts customer payments to be settled in the third quarter, improving coming operating cash flow. During this year, we have reduced debt with the repayment of U.S. dollar loan of $33 million in the first quarter. Let's move on to next slide, number 13. We now move over to rolling four quarters. Next slide, number 14. As mentioned before, OEM sales is late in recovery. Private jet looks promising going forward, and the aftermarket is driving the net sales growth. In numbers, net sales of SEK 190 million compared to SEK 142 million, up 34%.
Operating profit increased more than 300% to SEK 67 million compared to SEK 13 million last year. EBIT margin of 30%, up from 9%. Earnings per share, SEK 2.87 compared to SEK 0.78, an increase of more than 200%. Finally, operating cash flow of SEK 43 million, improved from -SEK 5 million last year. Next slide, number 15. I now hand back to Henrik to give you the outlook. Next slide, number 16.
Thank you, Markus. Let's go into the outlook and the net sales forecast for the third quarter. Forecast net sales between SEK 58 million and SEK 63 million, and we expect the sales mix to mirror the one of the second quarter. This gives a rolling four quarters between SEK 203 million and SEK 208 million. Next slide, number 17, please. In the first half of the year, the aviation industry remained strong, but with airlines and airports struggling to scale capacity to meet the surging travel demand. In parallel, the macro outlook has further deteriorated in the second quarter. We at CTT have the flexibility in our strategic plan to re-accelerate revenue growth in a challenging environment. Now more than ever, CTT is in a strong position to grow sales in all our segments.
Private jet, the partnership with ACJ started the recovery, and it puts us in a strong position for further growth, and it's not impacted by normal cyclical variations. OEM, Airbus planning to increase production and Boeing foresee deliveries to restart. This is long cycle, and it makes the production planning robust. Retrofit market for humidification and anti-condensation is positioned for growth, supported by the mega trends in favor for our products that make flying a little bit more sustainable and far more pleasurable. Humidification is usually linked to a cabin upgrade, and airline plans are long-term. Anti-condensation is more sensitive to short cyclical changes. The after market, there is still some pandemic recovery potential left. Next slide, number 18, please. The after market. We still foresee some pandemic recovery potentially of the after market from normalized aircraft utilization, equaling more flight hours when intercontinental travel continues to resume.
We have also more products and services compared to 2019. The pandemic recovery effect will however gradually fade away, and the underlying aftermarket will instead then reflect changes in population, driven by shipsets on delivered new built and retrofitted long distance aircraft entering into service. As a result, we predict that the underlying growth rate in the aftermarket will be lower going forward compared to the past year. Next slide, number 19, please. Our OEM market is still lagging, and OEM will not contribute to growth in 2022, but CTT is in a strong position when the recovery predicts a restart next year. On the 787, Boeing is communicating to be close to restarting deliveries. The program is producing at a very low rate and will continue to do so until the deliveries resume.
We expect a gradual return to five aircrafts per month over time. Airbus is currently targeting the A350 build rate to increase to six aircrafts per month next year. The first Boeing 777X airplane is now expected to be delivered in 2025. To minimize inventory and the number of airplanes requiring changes in configuration, the 777X production includes a temporary pause in 2023. In the background on this slide, you see Norse Atlantic Airways and one out of eight Boeing 787s fitted with CTT humidifiers onboard. The aircraft was previously operated by Norwegian Air Shuttle, but is from June leased by Norse Atlantic Airways. This aircraft serves as another good example of a new CTT customer. Let's go to slide number 20. There is a growing airline interest in cabin air quality, humidity, and wellness confirmed by the selection of our systems in new aircraft.
When the demand for travel now is rebounding, we at CTT start to get back into the position we were in 2019 on interest in retrofit programs. The benefit of humidified cabin versus cost of fitting an aircraft with our system is compelling. We notice a growing airline interest. Project will restart when the international travel comes back to normal levels and the airlines to normal profitability. This is an area where we now, together with our partner, Collins Aerospace, renew and strengthen our efforts. Next slide, number 21, please. We are currently on a very low level in our anti-condensation retrofit segment. The anti-condensation market is currently driven by sustainability, topped with a high oil price. CTT has a great offering for anti-condensation on Airbus A320 and Boeing 737. We increase our efforts to obtain a Supplemental Type Certificate for Boeing 737 MAX.
We focus on the European airlines, where sustainability is a key target for all airlines. We have a strong prospect list that we continue to work on. Adding to that, our customers Jet2 order 57 new Airbus A321 and KLM Transavia, another 100 Airbus A320. That is great sales opportunities for CTT. Next slide, number 22. In quarter two, we saw that sales in private jets came back as predicted. CTT is dominating the wide-body VIP segment, and we now target to grow into the large cabin business jet segment. Next slide, 23, please. Our first opportunity is the Airbus ACJ320 family. Together with Airbus Corporate Jets, we offer optimized humidification. Our humidification system is promoted by Airbus, and we got our first orders in the fourth quarter 2021.
The bolt-on kit delivery is more scalable compared to the VIP project together with the completion centers that we have done in the past. Airbus has now sold the first handful of systems that will be delivered in 2022. Next slide, number 24, please. Our second partnership is this partnership for the ACJ TwoTwenty business jet. The first order was received in July, a couple of weeks ago, and after installation of a bolt-on kit in the completion center, this aircraft will be entering into services in 2023. We expect this to be the first out of several orders from ACJ. Next slide, number 25. We see a big opportunity in the large cabin business jet market. Here the OEMs hold the keys to the market.
With good references from the VIP market and the cooperation with ACJ on the TwoT wenty, we have put ourselves in a position to successfully migrate into the large cabin business jet market. The large cabin long-range business jet market consists of 51-100 new aircraft per year. The jets are equipped for best comfort, and the humidification system is required for a matching climate on board. The first humidification system fitted to a Bombardier Global 7500 is delivered to a charter operator and is now in service. CTT now has the needed references to approach other Global 7500 customers and even more importantly, Bombardier. We will in parallel, together with our partners, intensify our efforts to reach out to the other OEMs such as Gulfstream and Dassault and their customers. Next slide, number 26, please.
Despite the effect from higher inflation and measures from central banks are likely to lower travel demand and put pressure on the airline margins, I want to underline that I remain confident in the long-term outlook of our business, supported by mega trends in favor for our products that make flying a little bit more sustainable and far more pleasurable. I'm convinced that the CTT team will be able to navigate the business landscape and generate solid growth despite coming challenges. Now more than ever, CTT is in a strong position to grow sales in all of our segments. Having that said, let's go to the last slide and hand it over to you for questions. Thank you.
Thank you very much. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using the speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster. Our first question is from Karl Bokvist with ABG. Please go ahead.
Thank you and good morning. The first one is more related to the quarter specifically, in the cash flow statements and the build-up on receivables. I seem to recall that in the first quarter, you also said that certain milestones were postponed a quarter ahead. I'm just curious to find out if these are still kind of the same projects that you refer to that were postponed already in Q1 and now into Q3, or if it's, you know, some things that you booked in Q1 that you actually received money from in Q2, but then the ones you were set to book in Q2 will now be in Q3.
I can answer that. Normally, when you have higher sales in one quarter, you get or CTT gets the payment in the quarter after. We normally have about 60 days of credit time to our customers. It's natural when you increase sales that the payments come the quarter after. In this quarter, we had a lot of big payments in the end of the quarter. We don't see that this is not a problem for us. We are confident that the customers will pay us in the third quarter.
Understood. On the Q3 outlook and the sales forecast there with kind of a similar situation among the segments there, just to understand the OEM ramp up, would it be fair to assume that the OEM ramp up will first start to materialize early 2023? Or do you think that we could see signs of increasing sales already in the fourth quarter?
We foresee that it will start next year. They need to ramp up, deliver the aircraft on ground and then come back into production.
Understood. Just a bit of a similar question, but on the private jet side, now that you have started, you know, actually establishing formal partnerships with Airbus in particular, but you also highlight Bombardier, for example. How should we think about the potential sales progression in this segment?
It's an extremely good question and I think a few things. That's important to point out that we have this proof of concept with a certified system and a satisfied customer, Bombardier Global 7500. Also having quite a lot of buzz in the market from the ACJ cooperation on the TwoTwenty. We see an increase in interest from all the OEMs now, and we have started discussions with them. They're also quite afraid of condensation in the aircraft. That's the first question we get. I think now with those two references, we can actually show them that we have systems in the air that gives a nice climate on board without any condensation problems. We have the system for Bombardier Global 7500 for retrofit ready to be delivered.
Our goal is, as you know, to be as a standard or as a standard option with the OEMs, and that will take a little bit longer time. It's picking up now, but it's extremely hard to predict when we can get firm contracts or deals with those OEMs. I think, again, having this Bombardier up and flying and also now ACJ proving the TwoTwenty is equipped, it's really creating a buzz and an interest in the market.
All right. The final one just for me before getting back in the queue is on the aftermarket side. Would it be possible for you to give some kind of comments on how you believe that the installed base has developed during the first half of this year?
How the installed base has developed? I mean.
Yes, just to understand the kind of, you highlight the strong recovery in, within the installed base. You also say, you know, there is potential once you begin to deliver more systems again, and up until a few quarters ago, the base still grew. Just to understand if you still believe that the installed base or the population of systems out there continue to grow a bit or at least remain flat during the first half of the year.
Okay. Compared to 2019 then, the installed base is more or less the same. A350 has continued to deliver, but it's five aircrafts per month. Compared to the 787 fleet, it's quite not so much. That is more or less constant since 2019. It's the flying hours that come back. What's happening now is that as soon as Boeing restarts to resume the deliveries, those 115-120 aircraft parked on the ground will enter into service. That, of course, will generate more flight hours and increase our aftermarket sales with approximately this 4,000 flight hour delay, so a little bit less than a year. Those will come in and affect our aftermarket again.
We will continue to deliver systems with the build rate that Boeing and Airbus has. I really, really hope to put some retrofit deals into play as well during next year.
All right. Thank you. I'll get back in the queue.