Detection Technology (DETEC) Q4 2024 earnings summary

Executive summary

• Q4 sales reached EUR 31.6 million, up 0.9% year-over-year, with EBITDA/EBITA at EUR 5.2 million and a 16.3% margin.

• Full-year sales were EUR 107.5 million, up 3.6%, with EBITDA/EBITA of EUR 14.9 million (13.9% margin), and net profit and EPS doubled year-over-year.

• Security became the largest business unit, accounting for 44% of Q4 sales and 43% for the full year.

• Board proposes a record dividend of EUR 0.50 per share (66% payout ratio).

• Strong cash flow and reduced working capital supported financial resilience.

Financial highlights

• Q4 cash flow from operations was EUR 6.9 million; full-year operating cash flow reached EUR 20.1 million, doubling from the prior year.

• Earnings per share for the year was EUR 0.76 (0.38); Q4 EPS was EUR 0.28 (0.24).

• R&D costs were stable at about 10.6% of sales, totaling EUR 11.4 million.

• Return on investment improved to 17.4% (up from 9.9%).

• Net interest-bearing debt at year-end was EUR -27.8 million, with gearing at -33.6%.

Outlook and guidance

• Q1 2025 expected to be flat overall, with industrial and medical segments growing but security declining due to inventory corrections.

• Q2 2025 guidance is for double-digit sales growth, mainly driven by medical recovery.

• Medium-term targets: annual sales growth of at least 10% and EBITA margin of 15%.