Kentima (KENH) Q3 2024 earnings summary

Executive summary

• Q3 marked a turnaround with record order intake of 23.2 MSEK, driven by a 10.8 MSEK security order, the largest in company history.

• Net sales in Q3 rose 4% year-over-year to 11,324 KSEK, with EBITDA up 43% and EBIT up to 639 KSEK from 34 KSEK.

• Egenutvecklade Produkter sales grew 31% in Q3, reaching 5,043 KSEK.

• Despite Q3 improvements, the nine-month period saw lower sales and earnings due to earlier market headwinds.

• Management expects significant growth in 2025, supported by large orders and new product launches.

Financial highlights

• Q3 net sales: 11,324 (10,837) KSEK; Q1–Q3 net sales: 39,570 (45,488) KSEK.

• Q3 EBITDA: 1,719 (1,205) KSEK; Q1–Q3 EBITDA: 2,575 (6,064) KSEK.

• Q3 EBIT: 639 (34) KSEK; Q1–Q3 EBIT: -867 (2,539) KSEK.

• Q3 pre-tax profit: 224 (-261) KSEK; Q1–Q3 pre-tax profit: -2,094 (1,501) KSEK.

• Q3 operating cash flow: 2,432 (-1,776) KSEK; Q1–Q3: 3,991 (4,200) KSEK.

Outlook and guidance

• Management anticipates strong growth in 2025, with both group sales and Egenutvecklade Produkter expected to rise sharply.

• Delivery of the record 10.8 MSEK security order is scheduled for 2025, expected to boost results.

• Ongoing investments in product development and exports are set to drive future profitability.