Indutrade (INDT) Q3 2024 earnings summary

Executive summary

• Order intake grew 4% year-over-year to SEK 7,537 million in Q3 2024, with 2% organic growth; 4 out of 5 business areas saw organic order intake growth, led by process industry and energy sector demand.

• Net sales increased 2% to SEK 7,973 million; organic sales were flat; EBITA margin remained high at 14.8%.

• Thirteen acquisitions completed in 2024, contributing SEK 1.2 billion in annual sales; strong pipeline for further deals.

• New organizational structure with over 30 business segments implemented to drive scalable growth and acquisition activity.

• Profit for the quarter rose 3% to SEK 700 million; EPS before dilution was SEK 1.92, up 3%.

Financial highlights

• Q3 2024 net sales: SEK 7,973 million (+2%); YTD net sales: SEK 24,208 million (+1%).

• EBITA: SEK 1,182 million (-1%); EBITA margin: 14.8% (down from 15.2%).

• Gross margin in Q3: 34.0% (vs. 34.8% last year); cash flow from operating activities: SEK 1,019 million (-17%).

• Return on capital employed: 19% (down from 21%); net debt/EBITDA: 1.6x; net debt/equity: 56%.

• Earnings per share rose 3% in the quarter but are down 7% year-to-date.

Outlook and guidance

• Demand remains stable and strong, but economic uncertainty persists for coming quarters.

• Diversified structure and ability to adapt operations support resilience and sustainable growth.

• Infrastructure and construction segment expected to improve with lower interest rates and better investment climate in 2025.

• No significant sequential differences expected between Q3 and Q4 order intake.