Guideline Geo (GGEO) investor relations material

Executive summary

• Q3 sales and order intake declined YoY, while EBITDA and EBIT improved; Jan–Sep EBIT returned to positive territory, supported by cost control and the US restructuring.

• Jan–Sep reported revenue fell 1% but rose 6% at comparable currency rates; strategic Asian tenders and infrastructure demand supported activity.

Financial highlights

• Q3 net sales were MSEK 42.2 vs 46.0, down 8% YoY or 7% at comparable currency rates; order intake was MSEK 38.7 vs 46.9.

• Jan–Sep net sales were MSEK 139.3 vs 140.1; order intake was MSEK 132.4 vs 140.6.

• Q3 EBITDA was MSEK 6.1 vs 5.1 and EBIT was MSEK 2.1 vs 0.9; Jan–Sep EBITDA was MSEK 11.6 vs 8.1 and EBIT was MSEK 0.1 vs -5.5.

• Q3 net profit was MSEK 1.9 vs 1.5 and EPS was SEK 0.16 vs 0.13; Jan–Sep net profit was MSEK 0.7 vs a loss of 7.0 and EPS was SEK 0.06 vs -0.61.

• Q3 operating cash flow was MSEK -3.6 vs 0.9; Jan–Sep operating cash flow was MSEK 9.1 vs 13.1, with net cash of MSEK 16.5 at quarter-end.

Outlook and guidance

• Q4 is typically the strongest sales period; management expected a strong Q4, while noting that the outcome remained to be seen.

• Pipeline includes more large tenders than a couple of years ago; the Korea and Malaysia wins were cited as evidence of the ability to close larger tenders.

• A larger distributor-sales share may lower near-term revenue and profitability per sale, with longer-term potential to expand global reach and scale.