BALCO GROUP (BALCO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales rose 8% to SEK 374 million, driven by acquisitions, while organic sales declined 23% year-over-year.

• Order intake increased 26% to SEK 380 million, with acquired order intake up 37% and organic order intake down 11%.

• Operating cash flow improved significantly to SEK 64 million from -SEK 10 million year-over-year.

• Adjusted operating profit (EBITA/EBITDA) was SEK 19 million, margin 5.0% (down from 8.9%).

• Earnings per share dropped to SEK 0.15 from SEK 0.94 year-over-year.

Financial highlights

• Net sales for the quarter: SEK 374 million (up 8% year-over-year); year-to-date: SEK 700 million (up 4%).

• Adjusted EBITA/EBITDA YTD: SEK 35 million, margin 5.0% (down from 8.8%).

• Earnings per share: SEK 0.15 for the quarter; SEK 0.25 YTD.

• Order backlog increased 16% to SEK 1,384 million.

• Operating cash flow: SEK 64 million for the quarter; SEK 82 million YTD.

Outlook and guidance

• Market activity is increasing, especially in Sweden and Norway, but decision processes remain slow, impacting net sales and earnings for the rest of 2024.

• Profitability is expected to remain at current low levels through 2024, with improvement anticipated in 2025 as volumes recover.

• Continued focus on cost control, order intake, and retaining key expertise; selective acquisitions remain a priority.