Alleima (ALLEI) Q3 2024 earnings summary

Executive summary

• Organic revenue grew 3% year-over-year to SEK 4,498 million, with a solid backlog and diversified segment exposure, while organic order intake declined 8% due to oil and gas and industrial heating; medical and nuclear remained strong.

• Adjusted EBIT margin was 7.0%, with adjusted EBIT between SEK 314 million and SEK 340 million, impacted by currency headwinds.

• Free operating cash flow was SEK 411 million, and adjusted EPS (diluted) increased to between SEK 1.02 and SEK 1.2.

• Strategic investments announced: expansion of steam generator tube capacity for nuclear and a new medical facility in Malaysia, with first deliveries in 2026.

• Sustainability efforts recognized with EcoVadis Gold Medal, placing among top 5% globally.

Financial highlights

• Quarterly revenues reached SEK 4,498 million, up 3% organically year-over-year, but down 3% reported.

• Adjusted EBIT margin was 7.0%, with adjusted EBIT between SEK 314 million and SEK 340 million, despite currency headwinds.

• Adjusted earnings per share (diluted) increased to between SEK 1.02 and SEK 1.2.

• Free operating cash flow was SEK 411 million, down from SEK 812 million year-over-year.

• Book-to-bill ratio at 100% on a rolling 12-month basis.

Outlook and guidance

• Market sentiment remains mixed and macroeconomic environment uncertain; backlog and near-term delivery visibility remain high.

• Product mix expected to remain similar in Q4; cash flow typically higher in H2.

• CapEx guidance raised to SEK 1.05 billion for the full year, mainly due to nuclear capacity investment.

• Currency and metal price headwinds expected to persist in Q4, with negative EBIT impact of SEK -40 million and SEK -200 million respectively.

• Normalized tax rate for FY 2024 estimated at 24–26%.