Fasadgruppen Group (FG) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales fell 4.5% year-over-year, with a 9.9% organic decline, mainly due to lower material prices and a challenging Swedish market, while Norway and Finland showed organic growth.

• Adjusted EBITDA/EBITA margin improved to 7.7% in Q3, up from earlier quarters, supported by cost-saving measures and workforce reductions.

• Order backlog declined 18.7%–21% year-over-year, but margin on backlog remained stable sequentially, reflecting selectivity in project intake.

• Cash conversion exceeded 100% over the last 12 months, with Q3 operating cash flow at SEK 126.3 million.

• Strategic acquisitions in Norway, Sweden, and the UK, including Clear Line, support long-term growth.

Financial highlights

• Net sales decreased 4.5% year-over-year in Q3; organic revenues down 9.9%.

• Adjusted EBITDA/EBITA margin reached 7.7% in Q3; adjusted EBITA was SEK 92.8 million.

• Operating cash flow for Q3 was SEK 126.3 million; cash conversion above 100% LTM.

• Net debt to adjusted EBITDA (pro forma, excl. Clear Line) was just below 3.5x; reported at 3.7x at quarter-end.

• Average interest rate for the period was 6%, up from 4.6% last year.

Outlook and guidance

• Management expects margin improvement from current levels, viewing Q3 as the trough, and anticipates organic volume growth in 2025, depending on material prices.

• Sentiment and tender activity have improved, especially among tenant-owner associations and the public sector.

• Market conditions remain challenging in Sweden, with no major changes since the last period.

• Nordic renovation demand remains stable long-term, with continued focus on acquisitions and sustainability.