Alimak Group (ALIG) Q3 2024 earnings summary

Executive summary

• Achieved all-time high adjusted EBITA margin of 17.8% in Q3 2024, progressing toward the >18% target, with all divisions contributing positively despite challenging construction markets.

• Revenue grew 1% year-over-year to SEK 1,742 million (4% at constant currency), driven by Industrial, Wind, and Height Safety & Productivity Solutions divisions.

• Net result increased by 10% to SEK 155 million; adjusted EPS was SEK 1.79, up from SEK 1.46 last year.

• Transformation under the New Heights program and ongoing operational efficiency initiatives supported performance.

• Strong balance sheet and cash conversion support ongoing investments and growth initiatives.

Financial highlights

• Adjusted EBITA/EBITDA reached SEK 310 million (margin 17.8%), up from SEK 279 million (16.1%) last year, marking an all-time high.

• Revenue was SEK 1,742 million, up 1% year-over-year.

• Order intake was SEK 1,592 million, down 5% year-over-year.

• Gross margin improved to 40.0% (from 38.8%); operating expenses rose to 22.4% of revenue.

• Net debt/EBITDA reduced to 2.12, well below the 2.5x target.

Outlook and guidance

• Construction market expected to remain challenging into mid-2025, with improvement anticipated as interest rates decline.

• Confident in ability to grow sales in 2025 despite a lower backlog, citing higher quality orders and market rebound potential.

• Façade Access margins expected to improve further, aligning with group targets by 2026.

• Wind division margins expected to remain strong but may normalize to 15%-16% over time.

• Company remains on track to deliver on financial and sustainability targets.