AFRY (AFRY) Q2 2024 earnings summary

Executive summary

• Net sales rose 4.7% year-over-year in Q2 2024 to SEK 7,191 million, with adjusted organic growth of 2.2% and stable order stock at SEK 20 billion.

• Profitability improved, with EBITA at SEK 572 million (up from SEK 421 million) and EBITA margin at 8.0% (6.1% last year), mainly driven by Infrastructure.

• Improvement programs in Infrastructure and capacity adjustments in Process Industries continued as planned.

• Strong demand in energy, automotive, and life sciences; weak demand in pulp & paper, real estate, telecom, and IT consulting.

• Several significant project wins in energy and food-tech sectors, including assignments for Vattenfall, NRK, and cReal.

Financial highlights

• Q2 2024 net sales: SEK 7,191 million (6,869); EBITA excl. items: SEK 572 million (421); EBITA margin improved to 8.0% from 6.1% last year.

• Rolling twelve-month net sales at SEK 27 billion and EBITA at SEK 2.1 billion.

• Earnings per share in Q2: SEK 3.33 (1.77); cash flow from operating activities: SEK 420 million.

• Available liquidity at SEK 3.8 billion at quarter-end; net debt/EBITDA at 2.6; net debt/equity ratio: 43.4%.

• Dividend of SEK 623 million paid in Q2; new SEK 800 million bond issued, SEK 800 million bank loan and SEK 149 million convertible repaid.

Outlook and guidance

• Focus remains on profitability improvements, especially in Infrastructure, and building on strong positions in industry and energy sectors.

• Continued emphasis on efficiency and flexibility to adapt to a mixed market environment.

• Expectation to deleverage in the second half of the year, barring significant M&A activity.

• No material improvement yet in real estate or architects; cautious outlook for CapEx demand in Process Industries.

• AFRY is well-positioned for the energy and industrial transition, with a stable order stock and continued focus on operational excellence.