Fasadgruppen Group (FG) Q4 2024 earnings summary

Executive summary

• Stable performance in Denmark, Norway, and Finland, but Sweden experienced a significant decline due to low new construction activity and tough competition.

• Clear Line acquisition in the UK contributed strongly to earnings and order backlog, offsetting weak Swedish results.

• 2024 marked by disappointing results, with a shift in focus to deleveraging, profitability improvements, and a new flatter organizational structure.

• Largest acquisition to date (Clear Line) completed, with Liab Plåtbyggarna acquired in Q1 2025.

Financial highlights

• Net sales for Q4 2024 decreased by 1.6% year-over-year; organic sales down 15.6%, mainly due to Sweden.

• Adjusted EBITA/EBITDA margin declined to 6.4% in Q4 (from 9.1%); full-year margin at 5.7% (down from 8.8%).

• Cash conversion for 2024 was 118.5%, with Q4 at 220%.

• Net debt/adjusted EBITDA pro forma at year-end was 3.3x (target <2.5x); reported at 5.3x.

• No dividend proposed for 2024; dividend policy removed to prioritize deleveraging and growth.

Outlook and guidance

• 2025 focus is on improving profitability, reducing net debt/EBITDA below 2.5x, and restrained acquisition pace until leverage target is met.

• Segment reporting to be introduced in Q1 2025 for greater granularity.

• Long-term goal: 10 BSEK revenue and 10% margin by 2028.

• Swedish market expected to remain weak in early 2025, but order backlog and Clear Line's contribution support a stronger outlook.