H&D Wireless Sweden (HDW) Q2 2024 earnings summary

Executive summary

• Total revenue in Q2 2024 increased by 50% year-over-year to 11.6 MSEK, mainly due to the sale of the Casat product line for 6 MSEK.

• Net sales declined 45% year-over-year to 4.0 MSEK, reflecting ongoing market challenges and delayed deliveries.

• EBITDA improved to -1.2 MSEK from -3.7 MSEK year-over-year, while EBIT was -6.7 MSEK, slightly worse than last year.

• Significant cost reductions and restructuring are underway, including three subsidiaries in reconstruction and a focus on core IoT hardware and ODM business.

• Order intake rose 56% sequentially to 10 MSEK, with a new 20 MSEK framework agreement signed with Instagrid.

Financial highlights

• Q2 2024 revenue: 11.6 MSEK (up 50% year-over-year); net sales: 4.0 MSEK (down 45%).

• EBITDA: -1.2 MSEK (improved by 2.5 MSEK year-over-year); EBIT: -6.7 MSEK (down 0.2 MSEK year-over-year).

• Net result after financial items: -7.5 MSEK (down 0.4 MSEK year-over-year).

• Cash and cash equivalents at period end: 0.9 MSEK; equity: 2.1 MSEK; equity ratio: 5%.

• Cash flow from operations: -4.6 MSEK; new share issues raised 18.8 MSEK gross, 4.5 MSEK net liquidity.

Outlook and guidance

• Order backlog increased by nearly 18 MSEK from March to July, with expectations for sales to rebound as deliveries resume.

• Further cost reductions and possible divestments are planned to improve liquidity and focus on profitable segments.

• The company anticipates annual savings of 15–20 MSEK and debt reductions of 7–10 MSEK through restructuring.