Bawat Water Technologies (BAWAT) Q4 2024 earnings summary

Executive summary

• Sales in H2 2024 were SEK 6.3m, with full-year sales at SEK 15.2m, impacted by customer delays and postponed BaaS jobs to Q1 2025.

• BaaS (Ballast-as-a-Service) successfully introduced in multiple German ports and to yard clients, expanding market reach.

• Full implementation of the ballast water convention in September 2024 is expected to drive regulatory enforcement and market demand.

• Company focus is shifting toward higher-margin BaaS and mobile solutions, with positive EBITDA expected in 2025.

Financial highlights

• H2 2024 sales declined to SEK 6.4m from SEK 10.8m in H2 2023; full-year sales fell to SEK 15.2m from SEK 22.7m.

• Gross profit for H2 2024 was SEK 1.8m (27.6% margin), down from SEK 8.4m (77.1%) in H2 2023; full-year gross profit SEK 2.9m (19.2%).

• EBITDA for H2 2024 was SEK -10.5m, with full-year EBITDA at SEK -22.8m; result for the period was SEK -39.8m.

• Cash at year-end was SEK 13.6m, up from SEK 2.6m in 2023, supported by share issues; net interest-bearing debt rose to SEK 58.8m.

• No dividend will be paid for 2024.

Outlook and guidance

• Positive EBITDA is expected for H1 and full-year 2025, with guidance shifting from sales to EBITDA as the key metric.

• Delayed BaaS jobs and investments worth SEK 16m are expected to be executed in Q1 2025, supporting revenue and margin growth.

• Gross profit margins are anticipated to rise above 30% over time, driven by efficiency and recurring BaaS revenue.