Arjo (ARJO) Q4 2024 earnings summary

Executive summary

• Q4 2024 closed with solid sequential recovery and growth, especially in rental and service businesses, with strong demand across regions.

• Organic net sales growth for Q4 and full-year 2024 was 3.1%, with strong order intake and key growth in North America and the UK.

• Profitability improved through product mix, supply chain efficiency, and pricing actions.

• The business model combining capital, rental, and service continues to deliver stability in growth and earnings.

• Strong financial position with improved leverage and increased M&A focus.

Financial highlights

• Q4 adjusted EBITDA was SEK 653 million, up 6.5% year-over-year; full-year adjusted EBITDA was SEK 2,086 million.

• Gross margin for Q4 was 44.7%; full-year gross margin improved to 43.5% from 43.1% last year.

• Operating cash flow for Q4 was SEK 479 million; full-year operating cash flow was SEK 1.5 billion.

• Cash conversion was 82.3% for Q4 and 76.7% for the full year.

• Dividend proposed to increase to 0.95 SEK per share.

Outlook and guidance

• Organic net sales growth for 2025 expected within the 3%-5% target range.

• Stronger order book entering 2025, especially in North America.

• Plans for gross margin expansion and OPEX efficiency improvements in 2025.

• Continued focus on price adjustments, supply chain efficiencies, and cost control to offset inflationary pressures.