Head Engineering (HEAD) Q4 2024 earnings summary

Executive summary

• 2024 net sales were SEK 281.7m and operating profit SEK 60.4m; net income was SEK 48.1m. The year included the June acquisition of Lucent Chemicals and its subsidiary.

• TOPP projects entered operation in Bulgaria and Sweden, while a major TNT equipment order and a new chemicals contract supported business expansion.

Financial highlights

• Consolidated net sales were SEK 281.7m, other operating income SEK 0.5m, and total operating income SEK 282.2m for 2024.

• Consolidated operating profit was SEK 60.4m, profit before tax SEK 60.4m, tax expense SEK 12.3m, and net income SEK 48.1m.

• Parent net sales rose to SEK 273.0m from SEK 53.5m in 2023; operating profit was SEK 60.3m versus SEK 8.9m, and net income SEK 48.1m versus SEK 8.4m.

• Consolidated operating cash flow was SEK 129.9m; cash and cash equivalents ended the year at SEK 105.1m.

Outlook and guidance

• A Swedish TOPP3000 installation was expected to complete commissioning in January 2025; an Austrian TOPP1000 project was scheduled for commissioning in H1 2025.

• The major TNT equipment project began in January 2024, with customer inspection expected after ~1.5 years; delivery and startup follow successful inspection and installation.

• Demand for TNT and other explosives production equipment was expected to increase substantially, creating scope for further project sales.