I-Tech (ITECH) Q4 2024 earnings summary

Executive summary

• Achieved record year with 48% sales growth and 94% increase in operating profit, driven by strong Asian market demand and sales diversification, with over a third of sales from non-CMP customers.

• Q4 net sales reached SEK 57.8 million, up 129% year-over-year, capping a record quarter and year.

• Selektope demonstrated strong efficacy in reducing barnacle fouling and fuel consumption, with major marine coating companies launching new products.

• Recognized as a DI Gasell company for 2024.

• Leadership changes included a new CEO and Chairman.

Financial highlights

• Full-year net sales reached SEK 179.5 million, up from SEK 120.9 million in 2023, with Q4 sales at SEK 57.8 million.

• Operating profit grew 94% to SEK 45.5 million; EBITDA margin reached 30%.

• Gross margin stable at 53% for the year, with Q4 gross margin at 54%.

• Cash and cash equivalents at year-end: SEK 100.2 million; equity: SEK 157.4 million.

• Dividend proposed at SEK 1.75 per share, representing 53% of net profit.

Outlook and guidance

• Favorable market conditions expected to continue, with new customer product launches and market expansion in the Americas, New Zealand, and Malaysia.

• EU regulatory process for Selektope renewal ongoing, with a decision expected in Q3 2025.

• Operational improvements and cost reductions expected to further enhance gross margin.

• Continued investment in business development and regulatory compliance.

• Dry-docking market segment becoming more accessible, supporting future growth.