Assemblin Caverion Group (ACG) Q2 2024 earnings summary

Executive summary

• Assemblin and Caverion completed a merger in April 2024, forming a leading northern European technical service and installation company with 21,500 employees across 9 countries and SEK 43 billion in annual sales.

• The merger has started successfully, with improved profit margins and long-term refinancing secured.

• The group focuses on the full lifecycle of the built environment, offering services and projects in electrical, heating, ventilation, smart buildings, and more.

Financial highlights

• Q2 2024 net sales were SEK 10,884 million, down 0.8% year-over-year; order intake was SEK 11,283 million, down 0.1%.

• Adjusted EBITA reached SEK 667 million, up 19.9% year-over-year; adjusted EBITA margin improved to 6.1% from 5.1%.

• EBITA fell to SEK 345 million from SEK 388 million, margin at 3.2%.

• Net result for Q2 was SEK -81 million, impacted by non-recurring PPA amortizations and items affecting comparability.

• Order backlog at period end was SEK 32,035 million.

Outlook and guidance

• The group expects continued profitability improvements driven by operational synergies, but also continued restructuring and integration costs through the year.

• Market remains mixed, with growth in service, publicly funded, and industrial projects, while residential and new build project markets remain soft.

• Long-term growth drivers include digitalization, sustainability, and urbanization.

• Assemblin Caverion Group is well positioned for the future, supported by strong first-half performance and merger synergies.