AGES Industri (AGES) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 decreased by 7.4% to 1,392 MSEK compared to 1,503 MSEK in 2023, mainly due to normalized demand and phasing out unprofitable contracts.

• Operating profit before impairments was 48 MSEK (93), with a margin of 3.4% (6.2%). After impairments, operating profit was -139 MSEK (93).

• Impairment charges of -187 MSEK related to goodwill and fixed assets in the Unnaryd die casting business significantly impacted results.

• Result after tax was -156 MSEK (58), and EPS after impairments was -21.77 SEK (8.30).

• Strategic focus shifted to core areas: precision machining, trading, and engineering solutions, with divestment of AGES Casting Unnaryd agreed in February 2025.

Financial highlights

• Q4 net sales fell 14% to 329 MSEK (384); full-year net sales down 7.4% to 1,392 MSEK (1,503).

• Q4 operating profit before impairments was 8 MSEK (18); after impairments, -179 MSEK (18).

• Cash flow from operations was 99 MSEK (143) for the year; 17 MSEK (39) in Q4.

• Equity per share at year-end was 43 SEK (65); solidity at 36% (44%).

• Net investments in fixed assets were 46 MSEK (69), mainly for capacity expansion in precision machining.

Outlook and guidance

• Market for Precision Components stabilized at year-end; traditional industry demand steady, but new energy sector orders declined.

• Engineering Solutions saw weak project sales in Q4, but order situation expected to improve in coming quarters.

• Entering 2025 with caution and optimism, focusing on core areas and financial strength for long-term growth.