Hiab (HIAB) Q2 2024 earnings summary

Executive summary

• Achieved sixth consecutive quarter of strong results, completing the Kalmar demerger and reclassifying financials, with Cargotec now focused on Hiab and MacGregor.

• Hiab maintained strong profitability despite lower sales, while MacGregor posted a record quarter for comparable operating profit and continued its turnaround.

• Initiated the sales process for MacGregor and announced new leadership for standalone Hiab.

• Settled a major customer dispute in MacGregor, resulting in a EUR 39 million revenue reversal and EUR 29 million net one-off cost.

• New long-term financial targets published for Hiab; efficiency improvement programme planned, targeting EUR 20 million cost savings in 2025.

Financial highlights

• Q2 2024 orders received increased by 4% year-over-year to EUR 584 million; order book at EUR 1,691 million, down 14% year-over-year.

• Q2 2024 sales decreased by 4% to EUR 625 million; comparable operating profit rose 2% to EUR 82 million (13.1% margin); operating profit EUR 52 million (8.3% margin), impacted by MacGregor settlement.

• Hiab Q2 sales were EUR 433 million, down 11% year-over-year; comparable operating profit EUR 69 million (15.9% margin); cash conversion above 100%.

• MacGregor Q2: Orders up 26% to EUR 235 million; sales up 17% to EUR 192 million; comparable operating profit EUR 21 million (11.1% margin).

• Q2 cash flow from operations improved, driven by Hiab; net debt at EUR 18 million and gearing at 1.5%.

Outlook and guidance

• Hiab’s 2024 comparable operating profit margin expected above 13.5%; MacGregor’s comparable operating profit above EUR 55 million.

• Efficiency improvement program at Hiab targets EUR 20 million in savings, visible in 2025 results.

• Guidance reflects uncertainty in order conversion and potential one-off costs.