Atea (ATEA) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached NOK 16.5 billion, up 15% year-over-year, with profit before tax at NOK 329 million and EBIT at NOK 405 million.

• Full-year 2024 revenue was nearly NOK 54 billion, with pre-tax profit exceeding NOK 1 billion and a net cash position of almost NOK 1.4 billion.

• Strong sales growth was driven by new customer agreements, especially in the public sector, and improving market conditions.

• Operating cash flow in Q4 rose to NOK 2,154 million, up NOK 521 million year-over-year.

Financial highlights

• Total gross sales in Q4 were NOK 16.5 billion, up 14.9% year-over-year; hardware sales rose 18.8%, software 16.0%, and services 3.6%.

• Group revenue (IFRS) was NOK 10.6 billion, up 12.9% year-over-year; gross profit increased 1.4% to NOK 2.8 billion.

• Cash flow from operations in Q4 was exceptionally strong at NOK 2.2 billion, up NOK 521 million from last year.

• Net financial expenses dropped to NOK 37 million from NOK 94 million last year due to lower interest costs and FX impacts.

• Free cash flow in Q4 was NOK 2,011 million, up from NOK 1,534 million last year.

Outlook and guidance

• Demand for IT infrastructure is expected to grow at a healthy rate in 2025, with high single-digit growth targeted for 2025 and 2026.

• Gross margins are expected to normalize during the first half of 2025 as the sales mix shifts.

• Key growth drivers include defense, AI, Windows 10 End of Life, and cybersecurity.

• Dividend payout of NOK 7 per share proposed for 2024 results, at the top end of policy.

• IDC forecasts 2025–2028 annual market growth: hardware 4–7.4%, software 12.3–14%, services 6.2–6.8%.