Energy Save (ESGR) Q4 23/24 earnings summary

Executive summary

• Revenue grew for the third consecutive quarter, with Q4 net sales up 22% year-over-year to 59.4 MSEK, but full-year net sales declined 43% to 170.6 MSEK due to a weak European heat pump market.

• EBIT for Q4 was -6.5 MSEK (0.0), and for the year -28.1 MSEK (42.6), reflecting higher costs and market headwinds.

• Investments in technology, organization, and OEM/ODM business, including a major Aira contract, position the company for future growth.

Financial highlights

• Q4 operating income: 65.3 MSEK (+25% YoY); net sales: 59.4 MSEK (+22% YoY); EBIT: -6.5 MSEK; net result: -5.6 MSEK.

• Full-year net sales: 170.6 MSEK (-43% YoY); EBIT: -28.1 MSEK; net result: -27.5 MSEK; EPS: -4.2 SEK (5.0).

• Q4 gross margin on net sales: 32% (29%); full-year gross margin: 29% (31%).

• Q4 operating cash flow: 59.1 MSEK (-131.4); full-year: 30.5 MSEK (-122.7).

Outlook and guidance

• Management expects increased demand for heat pumps as market conditions improve, with investments made to capture future growth.

• The Aira OEM contract (200–400 MSEK over two years) is expected to be a key growth driver.