Addnode Group (ANOD) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 3% to SEK 1,859m, with currency-adjusted organic growth at 3% and recurring revenue at 74%.

• EBITA improved by 52% to SEK 200m, and EPS increased by 181% to SEK 0.73 compared to Q3 last year.

• Six acquisitions completed in 2024, expanding offerings in forest management, public transport, CAE technologies, and aerospace simulation.

• The group operates through three divisions: Design Management, Product Lifecycle Management, and Process Management.

• Transition to Autodesk's agent model in Europe and USA impacted reported growth but not gross profit or EBITA.

Financial highlights

• Gross profit in Q3 2024 was SEK 971m, up 9% YoY, with a gross margin of 52.2%.

• EBITA margin improved to 10.8% from 7.3% in Q3 2023.

• Cash flow from operating activities YTD was SEK 426m, up from SEK 257m in the prior year.

• Net debt stood at SEK 1,102m as of September 30, 2024, with SEK 1,157m in available credit and an equity ratio of 29%.

• Five-year net sales growth from SEK 3.8bn (2020) to SEK 8.4bn (2024), with ROE improved from 11% to over 17%.

Outlook and guidance

• Market expected to grow organically by 5–10% annually; current organic growth is temporarily boosted by three-year deals and transaction model changes.

• No major changes anticipated in Q4 compared to Q3; full impact of new transaction model in Europe will be seen in Q4.

• Management focuses on organic and acquisition-led growth, with high recurring revenues supporting long-term stability.

• Diversification across geographies and customer base is expected to mitigate risk and support sustainable value growth.

• Economic climate remains uncertain, with customers cautious on major investments.