CAG Group (CAG) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw record-high EBITA margin of 7.1% amid strong Defence demand and stable revenues, with a diversified customer base and focus on digital innovation and technology consultancy.

• Defence sector remains robust, representing up to a third of revenue; other segments show gradual improvement.

• Recognized as one of Europe's 100 best workplaces by Great Place To Work.

Financial highlights

• Q3 2024 revenue was 182.4 MSEK (181.8), up 0.3% year-over-year; EBITA grew 16% to 12.9 MSEK (11.1), with a record 7.1% margin.

• Jan–Sept 2024 revenue was 640.5 MSEK (641.7), down 0.2% year-over-year; EBITA 53.3 MSEK (56.0), margin 8.3% (8.7%).

• Net income Q3: 7.1 MSEK (6.6), EPS: 0.99 SEK (0.92); Jan–Sept: 33.8 MSEK (35.7), EPS: 4.71 SEK (4.98).

• Operating cash flow Q3: 12.7 MSEK (-18.5); Jan–Sept: 52.1 MSEK (35.0).

• Solid balance sheet with 90.5 MSEK in cash and 56.5% equity ratio at quarter-end.

Outlook and guidance

• Solid demand expected in Defence; general market activity is recovering and demand is expected to strengthen in 2025.

• Regulatory requirements (NIS-2, DORA, CSRD) are driving demand for advisory services.

• M&A market anticipated to pick up in 2025; company targets 1,000 MSEK revenue and 10% EBITA margin by 2025.