Firefly (FIRE) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was SEK 116.4m, down 1% year-over-year, with order intake at SEK 120.9m, down 2% year-over-year.

• Operating profit increased 9% to SEK 11.7m, or 25% to SEK 13.4m excluding SEK 1.7m in one-time CEO pension costs.

• Net profit for Q2 was SEK 9.6m, up 6% year-over-year; EPS rose to SEK 1.60.

• Cash flow from operations improved to SEK 1.8m in Q2, up from SEK 0.4m last year.

• Anders Bergström appointed as new CEO in May 2024.

Financial highlights

• Order backlog at period end was SEK 126.7m, down 8% year-over-year.

• For H1 2024, revenue grew 11% to SEK 235.5m, operating profit rose 52% to SEK 28.7m (62% to SEK 30.5m adjusted), and net profit increased 44% to SEK 22.8m.

• Cash flow from operations for H1 was SEK 11.0m, down 45% year-over-year.

• Equity at period end was SEK 143.3m, up 21% year-over-year.

• Liquid assets at period end were SEK 40.7m, up 7% year-over-year.

Outlook and guidance

• Management expects inventory to decrease relative to operations in coming quarters after a temporary increase due to supply chain review.

• Offer volumes up 24% in H1, with more large deals being quoted, supporting a positive long-term outlook.

• Despite weak market, underlying profitability is improving and the company is positioned for growth when the cycle turns.