Indutrade (INDT) Q2 2024 earnings summary

Executive summary

• Order intake grew 6% year-over-year to SEK 8,296 million, with 1% organic growth, reflecting stable demand in medical technology, pharmaceuticals, and process industry sectors.

• Net sales increased 5% year-over-year to a record SEK 8,491 million, with 1% organic growth, supported by strong acquisition activity and more working days.

• EBITDA/EBITA margin recovered to 14.8%, matching the underlying margin from last year, with improved cost management and strong performance in Life Science and Technology & Systems Solutions.

• Record acquisition pace with 12 companies acquired year-to-date, contributing SEK 1.1 billion in annual sales.

• Business climate remains uncertain for H2, but optimism persists due to solid backlog, acquisition pipeline, and new group structure.

Financial highlights

• Net sales: SEK 8,491 million (+5% YoY); Order intake: SEK 8,296 million (+6% YoY); Book-to-bill slightly below 1 for the quarter, above 1 year-to-date.

• EBITDA/EBITA margin at 14.8%, in line with last year excluding one-offs; EBITA up 3% in the quarter, mainly from acquisitions.

• Gross margin improved to 35.4% from 34.6% last year.

• Earnings per share rose 1% year-over-year to SEK 2.00.

• Operational cash flow at SEK 1,029 million for the quarter, down 7% year-over-year but second highest Q2 ever.

Outlook and guidance

• Expect continued strong acquisition activity and positive EBITDA/EBITA effects from recent acquisitions.

• Anticipate stable or slightly improved cost situation in H2, with ongoing focus on gross margin management.

• Infrastructure and construction expected to recover slowly, with more impact in 2025.

• Life Science and Process, Energy & Water segments expected to maintain strong performance, with some volatility in order intake.

• Economic uncertainty persists, but structural trends and a scalable, decentralized model provide resilience and long-term growth potential.