EmbeddedArt Group (EMART) Q4 2024 earnings summary

Executive summary

• EmbeddedArt Group AB completed a reverse acquisition, integrating EmbeddedArt AB and its subsidiary from April 1, 2024, resulting in significant structural and financial changes.

• Net sales increased by 27.9% year-over-year to 49,818 KSEK, driven by growth in both defense and IoT segments.

• Operating result was -9,193 KSEK, heavily impacted by a one-time goodwill write-off of 12,248 KSEK related to the acquisition; adjusted operating profit was 3,055 KSEK.

• Cash flow improved to 3,733 KSEK from 826 KSEK year-over-year.

• The group is experiencing increased order intake, especially from defense sector clients such as FMV and Saab.

Financial highlights

• Net sales: 49,818 KSEK (up 27.9% year-over-year).

• Operating result: -9,193 KSEK (5,159 KSEK prior year), mainly due to a non-recurring goodwill cost of 12,248 KSEK.

• Net result: -10,073 KSEK (1,641 KSEK prior year).

• Earnings per share: -0.118 SEK (before reverse split).

• Cash and cash equivalents at year-end: 6,756 KSEK (3,024 KSEK prior year).

Outlook and guidance

• Management expects continued growth opportunities in the defense sector, supported by increased defense budgets and new orders.

• The company is actively seeking acquisition targets to accelerate growth, particularly in defense.

• Ongoing product development and research projects are expected to broaden the product portfolio.