Head Engineering (HEAD) Q4 2023 earnings summary

Executive summary

• Revenue rose to 53,477 kSEK from 21,629 kSEK, driven by a higher-than-normal number of TOPP plant orders; net income reached 8,375,718 SEK.

• Commercial activity expanded across tall-oil systems, soap analysis equipment and TNT production equipment, including the largest individual order received to date.

Financial highlights

• Revenue was 53,477 kSEK in 2023 versus 21,629 kSEK in 2022; total operating income including inventory changes and other operating income was 36,056 kSEK versus 24,871 kSEK.

• Operating income was 8,923,047 SEK versus 959,137 SEK; profit after financial items was 8,774,981 SEK versus 549,433 SEK.

• Net income was 8,375,718 SEK versus 549,433 SEK, after 399,263 SEK in tax expense in 2023.

Outlook and guidance

• Three TOPP projects awarded in 2023—two TOPP3000 installations in Sweden and one TOPP1000 in Bulgaria—were scheduled for installation and commissioning in 2024; equipment delivery had largely progressed well.

• A further TOPP1000 order in Austria was secured in early 2024, with equipment delivery and installation scheduled to begin in autumn 2024.

• TNT project basic engineering was scheduled to take six months from January 2024; subsequent detailed engineering and equipment procurement depend on a second advance payment.

• Resolution of BLISS operating issues was expected by late 2024, with a new mill screen and further trials planned.