Garo (GARO) Q4 2024 earnings summary

Executive summary

• Q4 2024/2025 net sales were SEK 283–283.8 million, down 9% year-over-year; full-year sales declined 16% to SEK 1.2 billion/MSEK 1,152.

• Electrification showed 2% Q4 sales growth, with strong performance in Ireland and stable demand in public, commercial, and industrial sectors; E-mobility sales declined 33–34% amid macroeconomic headwinds.

• Adjusted EBIT/operating profit turned positive in Q4 at SEK 3–3.3 million, but full-year adjusted EBIT was negative SEK 7–7.2 million, impacted by SEK 48–48.4 million in inventory write-downs and non-recurring costs.

• Action program focused on efficiency, cost control, and profitability was implemented, reducing headcount by 15% to 406 and improving production efficiency.

• No dividend proposed for 2024 due to negative earnings; new CEO Jonas Klarén appointed effective January 13, 2025.

Financial highlights

• Q4 adjusted EBIT was SEK 3–3.3 million (margin 1.2%), up from SEK -8.3 million; full-year adjusted EBIT was SEK -7 to -7.2 million, down from SEK 43 million in 2023.

• Q4 cash flow from operating activities was SEK 37–37.4 million; net debt at year-end was SEK 285–285.1 million, up from SEK 222–223 million.

• Equity/assets ratio stood at 50%, with SEK 100 million in available liquidity.

• Investments for the year totaled SEK 19.6 million, down from SEK 108.2 million in 2023.

• Return on equity for the year was -10.3% (5.1%).

Outlook and guidance

• Gradual market improvement expected in 2025 for both Electrification and E-mobility, with long-term growth driven by infrastructure expansion and sustainability.

• Nordic residential construction is expected to recover, benefiting housing-related products.

• Public, commercial, and industrial demand remains stable.