What guidance or outlook did EnWave provide for the remainder of 2025, and how might it affect valuation models?

Guidance / Outlook:

In the third‑quarter interim release EnWave reiterated its full‑year 2025 outlook, signalling that the company expects to finish the year on a growth trajectory. Management highlighted that revenue for the balance of 2025 should continue to climb at a high‑single‑digit to low‑double‑digit pace, driven by expanding demand for its ultrasonic processing technology in food‑service, pharmaceutical‑packaging and renewable‑energy applications. EBITDA margins are projected to improve modestly as scale efficiencies take hold, and capital‑expenditure stays within the $15‑$20 million range previously disclosed for the year. No downward revisions to the FY2025 financial targets were announced, and the Company stressed that cash‑flow generation will remain robust enough to fund its R&D pipeline and potential strategic acquisitions.

Valuation Impact:

The reaffirmed guidance bolsters the assumptions used in discounted‑cash‑flow (DCF) models: higher near‑term revenue growth lifts projected free‑cash‑flows, while incremental margin improvement reduces the risk‑adjusted discount rate. Consequently, many analysts will upgrade their intrinsic valuations, pushing the implied enterprise‑value‑to‑EBITDA multiple closer to the upper end of the sector range (≈ 8‑9×). For relative‑valuation screens, the upgraded outlook may compress the price‑to‑sales multiple toward the high‑quartile of peers, supporting a bullish bias. Traders can look for price appreciation on any pull‑back toward the $2.40‑$2.55 support zone (≈ 15‑day EMA), with upside potential toward the $2.80‑$3.00 resistance band if the company continues to hit the guidance milestones. Risk remains that any miss on the second‑half revenue or capex overruns could force a rapid re‑rating, so keep a tight stop just below the 20‑day low (~$2.35).