Ferronordic (FNM) Q3 2024 earnings summary

Executive summary

• Revenue grew 77% year-over-year to SEK 1,141 million, mainly driven by the US acquisition and strong US performance.

• Operating profit reached SEK 2 million; excluding a SEK 31 million inventory impairment in Germany, it was SEK 32 million.

• Net income/profit was SEK -88 million, impacted by significant foreign exchange losses and higher finance costs.

• Net debt increased to SEK 1,792 million, mainly from the US acquisition and rental fleet expansion.

• Equity decreased to SEK 1,483 million, partly due to currency effects.

Financial highlights

• Q3 2024 revenue: SEK 1,141 million (up 77% year-over-year); gross profit: SEK 204 million (up 171%); gross margin: 17.9% (+6.2pp YoY).

• Operating profit: SEK 2 million (SEK 32 million excluding German impairment); operating margin: 0.1%.

• Net income: SEK -88 million; EPS: SEK -6.07.

• SG&A up 72% YoY, reflecting US business integration; SG&A/revenue at 16.3%.

• Q3 cash flow from operations: SEK 427 million; 9M cash flow: SEK 821 million.

Outlook and guidance

• Optimism for continued US growth, supported by infrastructure investments and post-election project launches.

• German market remains weak, but cost reductions and aftermarket demand provide resilience; long-term normalization and e-mobility optimism.

• Kazakhstan seen as a small but promising market for future growth.

• New financial targets: double 2024 revenue by 2029, operating margin above 6%, net debt/EBITDA below 3x.