EmbeddedArt Group (EMART) Q2 2024 earnings summary

Executive summary

• EmbeddedArt Group AB completed a reverse acquisition of EmbeddedArt AB and its subsidiary as of April 1, 2024, significantly expanding the group and shifting its focus to defense, IoT, and electronics sectors.

• The group reported a substantial increase in revenue and improved profitability metrics for the first half of 2024, driven by the consolidation of new entities.

Financial highlights

• Net sales for January–June 2024 rose 1,480% year-over-year to SEK 12,991k, with total income up 887% to SEK 13,457k.

• EBITDA improved by 90% to SEK -393k (from SEK -4,061k), and operating result improved by 73% to SEK -1,888k (from SEK -7,124k).

• Net result for the period was SEK -2,388k, a 68% improvement from SEK -7,448k year-over-year.

• Cash flow for the period was SEK 1,379k, supported in part by new loans.

• Earnings per share were SEK -0.141, reflecting the reverse split and improved from SEK -0.005 (pre-split basis).

Outlook and guidance

• Focus will be on leveraging synergies post-acquisition, with particular emphasis on IoT and defense, where demand and order intake are strong.

• The company sees significant growth potential in IoT platforms and defense-related product development, supported by recent large orders and extended service contracts.