CombinedX (CX) Q2 2024 earnings summary

Executive summary

• Revenue grew 30.6% year-over-year to 251.2 MSEK in Q2 2024, with organic growth of 2.1%, mainly driven by acquisitions.

• Adjusted EBIT margin nearly halved to 5.6% from 10.1% year-over-year, reflecting lower profitability.

• Growth was driven by acquisitions, but profitability was impacted by market challenges, lower utilization rates, and integration costs.

• Cost-saving measures and new contracts are expected to improve performance later in 2024.

Financial highlights

• Q2 net sales: 251.2 MSEK (192.4), Adjusted EBIT: 13.9 MSEK (19.4), Adjusted EBIT margin: 5.6% (10.1%).

• Calendar-adjusted growth was 28.9%, with organic growth at 0.9%.

• LTM revenue reached 840.2 MSEK, with LTM adjusted EBIT margin at 8.8%.

• Intäkter per FTE increased 3.2% to 1,672 KSEK/year LTM; personnel cost per FTE up 7.3% to 1,034 KSEK/year.

• Cash position at quarter-end was 94.0 MSEK; net debt/EBITDA at 0.4x.

Outlook and guidance

• Management expects profitability to recover as cost-saving measures and integration synergies take effect later in the year.

• No formal forecasts provided, but future prospects are considered good.

• Signs of improving demand in the market, but too early to confirm a sustained upturn.