Instalco (INSTAL) Q3 2024 earnings summary

Executive summary

• Net sales for the last twelve months reached SEK 13,956 million, with Q3 2024 net sales down 5% to SEK 3,144 million and EBITA margin at 6.0%, reflecting market challenges and project write-downs.

• Order backlog at period end was SEK 8,533 million, down 7.3% year-over-year, with a cautious approach to new orders.

• Service business grew 17% year-over-year, accounting for 34% of Q3 sales and providing stability amid challenging conditions.

• The group operates a highly decentralized model, supporting multidisciplinary solutions and local market adaptation.

• Three acquisitions completed YTD, including IT-Line Service Oy in Finland, strengthening the industrial segment.

Financial highlights

• Q3 2024 net sales were SEK 3,144 million, down 5% year-over-year; organic decline of 5%, acquired growth 1.5%.

• Q3 EBITA was SEK 188 million (margin 6.0%), down from SEK 246 million (7.4%) last year.

• Cash flow from operations in Q3 was SEK 119 million, stable year-over-year; cash conversion at 87% on a rolling 12-month basis.

• Order backlog at SEK 8,533 million as of Q3 2024.

• Earnings per share for Jan–Sep were SEK 1.17 (1.58/1.56), a decrease of over 25%.

Outlook and guidance

• Market conditions remain challenging with significant price pressure and limited change orders; timing of recovery is uncertain, but leading indicators are improving.

• Focus remains on profitability, efficiency, and preparing for the next growth cycle.

• Available capacity is being preserved for future profitable growth.