Fasadgruppen Group (FG) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw net sales decrease by 0.5% year-over-year, with organic revenue down 4.2% mainly due to tough competition and weak new construction in Sweden, while Norway, Denmark, and Finland experienced organic growth.

• Structural measures included CEO changes and enhanced cooperation between subsidiaries, alongside the launch of Elenta Solar in Sweden targeting property owners in Stockholm and Mälardalen.

• Several acquisitions were completed, including Brenden & Co (Norway, scaffolding) and JJ Svets & Smide (Sweden, steel structures), with additional M&A activity and letters of intent signed across the Nordics.

• Order backlog at the end of June 2024 decreased 14.9–16% organically year-over-year, with Denmark showing positive development.

• Profit for Q2 was SEK 31.4 million (SEK 0.65/share), with adjusted EBITA margin falling to 6.2% from 9.7% last year.

Financial highlights

• Q2 net sales were SEK 1,303.7 million (-0.5% year-over-year); organic sales declined 4.2%.

• Adjusted EBITA margin dropped to 6.2% (from 9.7% in Q2 2023), reflecting increased competition and price pressure.

• Operating cash flow for Q2 was SEK 92.2 million, down 20.5% year-over-year; cash conversion at 84.2%.

• Net debt to adjusted EBITDA increased to 3.2x, above the 2.5x target but below the 3.5x covenant; net debt was SEK 1,487.3 million.

• Average interest rate for H1 2024 was 6.1%.

Outlook and guidance

• H2 2024 is expected to be stronger than H1, with anticipated margin improvement and a focus on reducing net debt/EBITDA to 2.5x within the next couple of quarters.

• Order backlog margin improved compared to Q1 2024 and Q2 2023.

• 2028 targets reaffirmed: SEK 10 billion in sales and at least 10% margin.

• Positioned to capitalize on long-term market drivers, especially energy efficiency and regulatory changes.

• Focus remains on profitability, structural measures, and continued M&A to strengthen market position.