Firefly (FIRE) Q4 2024 earnings summary

Executive summary

• Achieved strong profitability in Q4 2024 despite a 5% decline in revenue and order intake year-over-year, driven by favorable product mix, cost control, and positive currency effects.

• Operating margin exceeded financial targets for the second consecutive quarter, with aftersales contributing nearly 27% of total sales.

• Geopolitical uncertainty and cautious investment climate led to lower order conversion, but high quotation volumes indicate future potential.

• Divested Italian explosion protection business in December, expected to reduce annual revenue by SEK 15m but improve profitability.

• Established a wholly owned US subsidiary to enhance aftersales and support in North America, launching in Q2 2025.

Financial highlights

• Q4 2024 revenue: SEK 135.3m (down 5% year-over-year); full-year 2024 revenue: SEK 497.1m (up 4%).

• Q4 operating income: SEK 20.8m (up 31%); full-year operating income: SEK 70.0m (up 20%).

• Q4 EPS: SEK 2.64 (up 53%); full-year EPS: SEK 9.14 (up 21%).

• Q4 cash flow from operations: SEK 25.7m (up 70%); full-year: SEK 42.5m (up 3%).

• Year-end cash: SEK 67.9m (up 28%); equity: SEK 175.3m (up 19%).

• Order backlog at year-end: SEK 104.5m (down 14% year-over-year).

Outlook and guidance

• Management expects continued cautious customer sentiment in the coming quarter but remains optimistic for the longer term due to strong quotation activity and planned customer projects.

• Board proposes a 16% dividend increase to SEK 5.50 per share.