4C Group (4C) Q4 2024 earnings summary

Executive summary

• Delivered over 100 military exercises in 2024, training more than 100,000 troops in NATO and allied countries, reflecting strong demand.

• Q4 2024 net sales rose 5% year-over-year to SEK 113.1M, with a 23% EBIT margin and improved cash flow.

• Signed key contracts in the UK, US, and with NATO defense customers, expanding presence in core markets.

• Continued investment in AI innovation and integration into solutions, supporting technical transformation.

• Operational restructuring and optimization led to reduced costs and increased efficiency.

Financial highlights

• Q4 net sales: SEK 113.1M (up 5% year-over-year); full-year net sales: SEK 344M.

• Q4 EBIT margin: 23% (Q4 2023: 15%); full-year EBIT margin: -2%.

• Software revenue accounted for 73% of Q4 net sales, up from 67% in Q4 2023.

• Annual recurring revenue (ARR) at year-end: SEK 163.8M, up from SEK 119.1M last year.

• OPEX decreased in H2 2024, with Q4 costs at SEK 76M.

Outlook and guidance

• Q4 cost levels expected to be maintained in coming quarters, with disciplined investment and focus on operational efficiency.

• Strong pipeline and secured orders for 2025, supporting continued growth and market expansion.

• Ongoing delivery of a SEK 90M contract over four years, with potential for expansion.

• Management expects improved and more stable cash flow in 2025, with sufficient financing for the next 12 months.

• No dividend proposed; cash flow to be reinvested for growth.