Clavister (CLAV) Q3 2024 earnings summary

Executive summary

• Achieved positive operating profit (EBIT) for the first time in Q3 2024, marking a significant milestone after years of strategic focus and operational improvements.

• Recorded 12 consecutive quarters of year-over-year sales growth, reflecting consistent business momentum.

• Order intake increased by 31% year-over-year, driven by new contracts in defence, public, and energy sectors.

• First product included in NATO's product catalogue, supporting future defence sector growth.

• 98% participation in TO8 warrant program, raising SEK 49.8 million to reduce net debt.

Financial highlights

• Net sales grew 16% year-over-year (21% FX-adjusted), reaching SEK 43.8m in Q3 2024.

• Gross margin improved to 80.4% (Q3 2023: 79.3%).

• Adjusted EBITDA margin reached a record 25% (SEK 11.5m), up 47% year-over-year.

• EBIT was SEK 0.7m (Q3 2023: -SEK 5.1m); Adjusted EBIT: SEK 1.6m.

• Order backlog stood at SEK 234 million.

Outlook and guidance

• Targeting at least 20% CAGR in net sales for 2023–2025; current trend is slightly below but improving.

• Full-year 2024 sales growth expected to exceed 2023.

• 2024 operating costs (adjusted) to remain in line with 2023 despite inflation.

• Ambition for 2024: EBITDA margin of at least 20% and positive operational cash flow.

• Order book extends to 2029, with potential to reach 2030–2031 as new defense contracts are added.