Indutrade (INDT) Q4 2024 earnings summary

Executive summary

• Achieved solid financial performance in 2024, with revenue reaching SEK 32.5 billion, up 2% year-over-year, and a stable EBITA margin of 14.4%, supported by a diversified structure and resilience in a weaker business climate.

• Completed 16 acquisitions in 2024, adding SEK 1.6 billion in annual turnover, with a strong pipeline and continued focus on sustainable, profitable growth.

• Board proposes a dividend increase to SEK 3.00 per share, up from SEK 2.85.

• Climate targets validated by the Science Based Targets initiative, aiming for a 50% reduction in Scope 1 & 2 emissions and 25% in Scope 3 by 2030, and net zero by 2050.

• Record-high operational cash flow in Q4 at SEK 1,599 million; full-year operational cash flow SEK 4,134 million.

Financial highlights

• Net sales grew 2% year-over-year to SEK 32.5 billion; Q4 net sales up 7% (2% organic); Q4 order intake flat, with a 5% organic decline.

• EBITA margin for 2024 at 14.4%; Q4 EBITA margin stable at 14.6% (14.3% excluding one-offs).

• Gross margin improved to 35.7% in Q4; full-year gross margin at 35.0%.

• EPS for Q4 increased 3% to SEK 2.01; full-year EPS at SEK 7.55, down from SEK 7.86 in 2023.

• Net debt/EBITDA stable at 1.4x; net debt/equity at 49% (down from 53%).

Outlook and guidance

• Market uncertainty expected to persist in coming quarters, with a slightly lower order backlog but positive macroeconomic trends and strong long-term prospects in key sectors.

• Life Science and Process, Energy and Water segments expected to perform well in 2025; acquisition pipeline remains robust.

• Infrastructure and Construction expected to see profitability improvement in 2025 after restructuring.

• New segment-based group structure to support continued organic and acquisition-driven growth.