AGES Industri (AGES) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 decreased by 3.6% to 787 MSEK compared to the same period last year, mainly due to phasing out unprofitable contracts and softer demand in automotive.

• Operating profit for H1 was 37 MSEK (45), with a margin of 4.7% (5.5%). Q2 operating profit was 15 MSEK (20), margin 3.9% (4.9%).

• Result per share for H1 was 3.14 SEK (3.89). Cash flow from operations was 70 MSEK (97).

• Strategic review of die casting completed, with one-off costs of 10 MSEK in H1, 3 MSEK in Q2.

• Acquisition of A-Tooling AB completed, strengthening the Engineering Solutions segment.

Financial highlights

• Q2 net sales: 385 MSEK (403), down 4.5% year-over-year.

• Q2 operating profit: 15 MSEK (20), margin 3.9% (4.9%).

• H1 operating profit: 37 MSEK (45), margin 4.7% (5.5%).

• H1 result after financial items: 28 MSEK (35).

• H1 cash flow from operations: 70 MSEK (97).

• H1 investments: 54 MSEK (43), mainly in capacity expansion for machining.

Outlook and guidance

• Noted market softening in late Q2, especially in automotive; lower volumes expected.

• Precision Components offsetting volume declines with new contracts and investments.

• Engineering Solutions expected to grow, with strengthened sales organization.

• Further cost adjustments may be needed in die casting if new sales take longer.