CTEK (CTEK) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached SEK 279 million, up 16% organically year-over-year, with 5% growth excluding a one-time General Motors order.

• Consumer division drove strong sales, marking the third consecutive quarter of organic growth and strong momentum, especially in North America and online channels.

• Professional division sales rose 40% organically in Q4, mainly due to the General Motors transaction, but faced challenges from low-margin sales and market headwinds.

• Termination of the General Motors collaboration resulted in SEK 90 million in non-cash impairments and significantly affected Q4 results.

• Full year 2024 net sales were SEK 914 million, up 4% organically, with a gross margin of 53.0% and net debt/EBITDA reduced to 1.8x.

Financial highlights

• Q4 gross margin was 49.8%, adjusted to 54.6% excluding the GM order; Q4 adjusted EBITA was SEK 25 million, margin 9.1%.

• Q4 operating profit was SEK -69 million, adjusted to SEK 20 million excluding GM impact.

• Full year adjusted EBITA margin improved to 9.8% from 6.7%; full year gross margin rose to 53.0% from 49.9%.

• Net cash at year-end was SEK 142 million, down from SEK 192 million, after SEK 100 million in loan amortization.

• Q4 cash flow from operations was SEK 59 million; full-year cash flow from operations was SEK 123 million.

Outlook and guidance

• Management expects the EVSE business to recover in 2025, driven by increased deliveries of Chargestorm Connected 3 and expansion into new markets.

• Strategic plan is progressing to phase three (profitable growth), with further details to be presented at the May 2025 Capital Markets Day.

• Continued investment in sales organization, especially in DACH, Nordics, and Eastern Europe, is expected to drive future growth.

• Board proposes no dividend for 2024.