Infrea (INFREA) Q4 2023 earnings summary

Executive summary

• FY23 revenue fell 3.6% to SEK 2,014.2m; EBITA declined to SEK 12.9m from SEK 94.3m, and net income was a loss of SEK 7.6m versus profit of SEK 68.3m.

• Q4 revenue declined 11.8% to SEK 618.3m; EBITA was SEK 24.6m versus SEK 46.0m, while net income was SEK 13.7m versus SEK 36.1m.

Financial highlights

• FY23 EBITDA was SEK 97.4m versus SEK 164.6m; EBITDA margin was 4.8% versus 7.8%. Operating income was SEK 12.5m versus SEK 93.5m.

• Operating cash flow was SEK 30.4m for FY23 versus SEK 135.0m; the decline was primarily attributed to lower earnings, while working capital remained too high.

• FY23 financial net expense increased to SEK 20.7m from SEK 12.6m, primarily due to higher STIBOR-linked borrowing costs.

Outlook and guidance

• 2024 focus: improve profitability, cash flow and liquidity; inflation’s impact is expected to ease, supporting more stable operating conditions.

• Order book entering 2024 was higher than entering 2023, with strong trends in Skåne and Dalarna; deferred work from Q4 makes capacity planning for March/April important.

• Several businesses had good utilization entering the year, supporting expectations for a more positive start than in 2023; challenges may persist during 2024.