Ahlstrom Oyj (AM1S) Q4 2024 earnings summary

Executive summary

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

• EBITDA margin improved by over 100 basis points to 15.2%, driven by internal transformation, disciplined cost management, and innovation.

• Business simplified from five to three divisions, aligned with megatrends, and portfolio strengthened through divestments (Aspa pulp mill, Bousbecque plant) and acquisition of ErtelAlsop.

• 31% of revenue generated from products launched in the last five years, exceeding innovation targets.

• Recognized for sustainability achievements: SBTi validation, EcoVadis Platinum, CDP A- score, and World Business Council for Sustainable Development membership.

Financial highlights

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

• Comparable EBITDA rose by EUR 31 million to EUR 451.2 million (+7%), with margin up 1.1 percentage points to 15.2%.

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

• Adjusted EBITDA (LTM) increased to EUR 513.9 million, reflecting transformation initiatives.

• CapEx reduced to EUR 161.9 million, focusing on asset utilization and upgrades.

Outlook and guidance

• Entered 2025 with strong discipline in fixed cost and cash flow management, and focus on deleveraging to bring leverage ratio below 3.

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

• CapEx expected to remain at 2024 levels in 2025, with ongoing focus on net working capital.

• Strategic pillars emphasize growth acceleration, innovation, operational strength, and cash discipline.

• Working capital targeted to remain stable or slightly improve, depending on volume growth.