Atlas Copco Group (ATCO) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw 4% organic order growth, record revenues of MSEK 45,988, and strong service business across all areas, with equipment orders slightly up.

• Full-year 2024 delivered record revenues of MSEK 176,771 (up 2% organically), stable profitability, and 33 acquisitions closed, including 11 in Q4.

• Operating profit for Q4 was MSEK 10,018 (margin 21.8%), with profit for the period at MSEK 7,800 and basic EPS of SEK 1.60.

• Board proposes a dividend of SEK 3.00 per share for 2024, up from SEK 2.80, to be paid in two installments.

• Record operating cash flow in Q4 (MSEK 9,915), with full-year operating cash flow at MSEK 30,981, mainly from working capital improvements.

Financial highlights

• Q4 operating profit reached MSEK 10,018 (margin 21.8%), with no difference between adjusted and nominal profit.

• Full-year operating profit was MSEK 38,166 (margin 21.6%), with adjusted full-year operating profit at MSEK 38,741 (margin 21.9%).

• Q4 basic EPS was SEK 1.60; full-year basic EPS was SEK 6.11.

• Return on capital employed was 28% for Q4 and the year, down from 30% prior year.

• Operating cash flow before acquisitions/divestments/dividends was MSEK 30,981 for the year.

Outlook and guidance

• Customer activity is expected to remain at current levels in Q1 2025, with no dramatic upswing or downswing anticipated.

• Effective tax rate for 2025 expected to be mid-22%.