Ahlstrom Holding 3 Oy (AM1S) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with all-time high comparable EBITDA of €451.2 million and operating cash flow, despite market volatility and limited tailwinds.

• Simplified business structure from five to three divisions, focusing on megatrends, operational efficiency, and specialty materials.

• Strategic divestments and acquisitions, including the sale of Aspa pulp mill, closure of Bousbecque plant, and acquisition of ErtelAlsop, strengthened the portfolio.

• Recognized for top-tier sustainability performance, with SBTi validation, EcoVadis Platinum, and CDP A- score.

• Growth supported by innovation, robust commercial pipeline, and transformation initiatives.

Financial highlights

• Net sales stable at €2,965.4 million, with like-for-like growth of 2% year-over-year excluding divestments.

• Comparable EBITDA rose by €31 million to €451 million (+7%), with margin up 1.1 percentage points to 15.2%.

• Operating cash flow reached a record €227 million, up 59% year-over-year.

• Free cash flow was €348.4 million, with cash conversion at 77.2%.

• CapEx reduced to €161.9 million, with improved net working capital and leverage ratio down to 3.6.

Outlook and guidance

• Market environment remains volatile entering 2025, but internal capabilities in pricing, procurement, and operational excellence provide confidence.

• CapEx expected to remain at 2024 levels in 2025, with ongoing focus on cash flow and working capital discipline.

• All segments expected to grow in 2025, with stable or improving working capital and leverage targeted below 3x over the next few years.

• Strategic pillars emphasize growth acceleration, innovation, operational strength, and employee engagement.