Kongsberg Automotive (KOA) Q4 2024 earnings summary

Executive summary

• EBIT improved to EUR 18.7 million (2.4% margin) in 2024 from negative EUR 19.7 million in 2023, despite a 10.7% revenue decline to EUR 788.2 million due to weak market demand.

• Cost base reduced by over EUR 30 million, including an 11% workforce reduction and operational excellence initiatives.

• Exceptional business wins reached EUR 1,526 million in lifetime value, with a book-to-bill ratio of 1.9, supporting future growth.

• Free cash flow improved but remained negative at EUR 20.3 million for the year, with Q4 turning positive at EUR 4.2 million.

• Sustainability highlights include joining the UN Global Compact, improving EcoVadis score to 60, 57% renewable energy share, and a 15% reduction in Scope 1 and 2 CO₂e emissions.

Financial highlights

• FY 2024 revenues declined by EUR 96 million to EUR 788.2 million (-10.7% YoY); Q4 revenues were EUR 185.2 million (-12.1% YoY).

• EBIT margin improved to 2.4% from -2.2% in 2023; adjusted EBIT margin was 2.4%.

• Free cash flow for the year was negative EUR 20.3 million, an improvement from negative EUR 34.9 million in 2023.

• Equity ratio increased to 33.7% from 30.2% last year; liquidity reserve at year-end was EUR 99.2 million.

• Leverage ratio (NIBD/Adjusted EBITDA) at 2.5; working capital to sales improved to 17.3%.

Outlook and guidance

• Revenues expected to remain stable in H1 2025 versus H2 2024, with potential upside in H2 2025.

• Positive EBIT margin development anticipated in 2025, excluding further geopolitical impacts.

• Market forecasts indicate flat commercial vehicle and passenger car markets in 2025, with growth expected from 2026.