Ferroamp (FERRO) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked by a 43% year-over-year revenue decline to 24.6 MSEK, reflecting continued weakness in solar and EV charging markets and high distributor inventories.

• Significant cost-saving measures and a strategic review led to expanded savings programs and major asset write-downs.

• A directed share issue in September raised 100 MSEK to secure working capital and financial flexibility.

Financial highlights

• Net sales for Q3 2024 were 24.6 MSEK, down from 43.0 MSEK in Q3 2023; total Q3 income was 36.4 MSEK.

• EBITDA for Q3 was -135.3 MSEK (adjusted: -21.6 MSEK), compared to -20.5 MSEK last year; EBIT was -172.4 MSEK, with a margin of -699%.

• Net loss after financial items was -173.4 MSEK, versus -29.7 MSEK in Q3 2023.

• Cash flow from operations was -54.8 MSEK; period-end cash was 65.3 MSEK.

• Equity ratio fell to 46% from 73% a year earlier.

Outlook and guidance

• Management targets positive operating cash flow in H1 2025 and positive EBITDA on a monthly basis in H2 2025.

• Market recovery is expected to be slow, but normalized distributor inventories should support future sales.