EmbeddedArt Group (EMART) Q3 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.

• Net sales and total revenues surged due to the consolidation of new subsidiaries, with a 2,052% and 889% increase respectively for January–September 2024 compared to the prior year.

• EBITDA improved by 95% year-over-year to kSEK -279 for the nine-month period, with positive EBITDA of kSEK 114 in Q3 2024.

• The group is now active in defense, IoT, and electronics, with key customers in the defense sector and broader electronics industry.

Financial highlights

• Net sales for January–September 2024 reached SEK 21.3 million, up from SEK 991,000 year-over-year.

• EBITDA for the period was SEK -279,000, a significant improvement from SEK -5.2 million in 2023.

• Operating income (EBIT) was SEK -2.6 million, up from SEK -9.9 million year-over-year.

• Net result for the period was SEK -3.0 million, compared to SEK -10.6 million in 2023.

• Cash flow for the period was SEK -166,000, with loans partially covering operational cash needs.

Outlook and guidance

• Management expects continued consolidation and integration of acquired businesses throughout 2024.

• Ongoing delivery of a SEK 8.5 million FMV order, with SEK 4.5 million to be delivered by year-end and further deliveries into 2025.

• The company anticipates further growth opportunities in IoT and defense, supported by new partnerships and product launches.