BALCO GROUP (BALCO) Q3 2024 earnings summary

Executive summary

• Net sales rose 31% to SEK 331 million in Q3 2024, driven by acquisitions, especially in Finland, and order intake surged 111% to SEK 285 million, with 49% organic growth.

• Adjusted operating profit (EBITA) was SEK 16–17 million (margin 5.0%), with EPS at SEK -0.03.

• Order backlog increased 25% to SEK 1.3 billion, reflecting strong project wins and selective intake.

• Structural changes included integrating and restructuring subsidiaries in Finland and Sweden, and selling the Norwegian subsidiary.

• New energy-saving solutions and patent applications, including balcony-integrated heat pumps, support the green transformation strategy.

Financial highlights

• Net sales YTD up 11% to SEK 1,031 million; acquired growth 43%, organic growth -8%, currency effect -4%.

• Adjusted EBITA YTD was SEK 52 million (margin 5.0%), down from SEK 74 million (margin 8.0%) last year.

• Operating cash flow for Q3 was SEK -1 million; YTD improved to SEK 81 million from SEK -2 million.

• EPS YTD was SEK 0.12, down from SEK 1.81; Q3 net income was SEK 1 million.

• Net debt including leases rose to SEK 359 million; equity ratio at 49%.

Outlook and guidance

• Customer activity is increasing from a low base, especially in renovation, but net sales and profit will be affected by previously lower order intake.

• Focus remains on order intake, cash flow, cost control, and selective project participation.

• No expectation of a rapid market rebound; gradual improvement anticipated.