Ecoclime Group (ECC) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 increased by 4.1% to 48.3 MSEK compared to Q3 2023, despite a seasonally weak quarter and one-off costs, mainly from write-downs.

• EBIT for Q3 2024 fell to -22.2 MSEK from -3.4 MSEK, mainly due to significant write-downs of capitalized development costs and weak profitability in Team Wessman.

• For Jan–Sep 2024, net sales decreased by 7.4% to 153.1 MSEK, and EBIT dropped to -30.2 MSEK from -14.3 MSEK year-over-year.

• The company divested Miljöbelysning, which is now reported as discontinued operations from April 2024.

Financial highlights

• Q3 2024 net sales: 48.3 MSEK (46.5 MSEK Q3 2023); Jan–Sep 2024: 153.1 MSEK (165.4 MSEK Jan–Sep 2023).

• Q3 2024 EBIT: -22.2 MSEK (-3.4 MSEK Q3 2023); Jan–Sep 2024 EBIT: -30.2 MSEK (-14.3 MSEK Jan–Sep 2023).

• Q3 2024 EPS: -0.49 SEK (-0.10 SEK Q3 2023); Jan–Sep 2024 EPS: -1.41 SEK (-0.69 SEK Jan–Sep 2023).

• Q3 2024 EBITDA margin: -10.7% (0.8% Q3 2023); EBIT margin: -46% (-7.4% Q3 2023).

• Cash flow from operations in Q3 2024 improved to -5.3 MSEK (-6.3 MSEK Q3 2023).

Outlook and guidance

• Management expects continued growth in Evertherm systems and sees accelerating demand as energy efficiency requirements increase in the EU.

• Cash flow is showing a positive trend, with further improvements expected.

• The company anticipates a more stable path forward after restructuring and divestments.