Green Landscaping Group (GREEN) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 rose 9% year-over-year to SEK 6,352 million, with 3% organic growth and 7% from acquisitions, and EBITA of SEK 528 million at an 8.3% margin despite market headwinds.

• Cash flow from operating activities improved to SEK 601 million for the year and SEK 282 million in Q4, reducing leverage to 2.5x.

• Eight acquisitions were completed in 2024, expanding presence in six countries, including three in Q4 in Finland, Switzerland, and Germany.

• Challenging market conditions persisted, especially in Sweden, but Norway and Other Europe segments showed strong growth and profitability.

• No dividend proposed for 2024 to support continued M&A activity; SEK 63 million in own shares repurchased for future acquisitions.

Financial highlights

• Q4 2024 net sales increased 7% year-over-year to SEK 1,774 million; EBITA up 3% to SEK 164 million, margin at 9.3%.

• Full-year EBITA margin was 8.3%, down from 8.8% in 2023; basic EPS for Q4 was SEK 1.09, down from SEK 1.66 last year.

• Order backlog at year-end was SEK 7,312 million, with normal fluctuations.

• Cash and cash equivalents at year-end were SEK 688 million.

• Net debt at year-end was SEK 2,195 million, with net debt/EBITDA at 2.5x.

Outlook and guidance

• Targeting 10% annual sales growth, 8-10 acquisitions for 2025, and EBITA margin of 8%.

• Focus on improving Swedish segment margins, expecting visible improvement by end of 2025 through best practice sharing and cost reviews.

• Market conditions expected to remain stable in 2025, with no rapid improvement or deterioration anticipated.

• No dividend proposed for 2024 to prioritize M&A and growth.