Kreate Group (KREATE) Q4 2024 earnings summary

Executive summary

• FY2024 revenue fell 13.9%, while EBITA rose to €8.8m from €7.8m and margin improved to 3.2% from 2.4%.

• Selective bidding, project risk management and flexible costs supported profitability; EBITA increased for five consecutive quarters.

• Year-end backlog was €176.6m, down 10.0% YoY but up 15.3% QoQ; 2025 results are expected to skew to H2.

Financial highlights

• FY revenue was €275.5m vs €320.0m; EBITDA was €15.3m vs €14.0m and EBITA was €8.8m vs €7.8m.

• Q4 revenue fell 5.9% YoY to €75.5m; EBITDA was €4.9m, EBITA €2.8m and net income €1.6m.

• FY operating income was €8.7m vs €7.6m and net income was €4.6m vs €3.9m; diluted EPS was €0.49 vs €0.44.

• Q4 EBIT included a €0.5m gain from the Tuusula property sale.

Outlook and guidance

• 2025 guidance is revenue of €290–310m and EBITA of €9–11m, both above FY2024 levels.

• Guidance reflects year-end backlog and anticipated conversion of development projects to execution from spring 2025; selective bidding and Swedish growth are expected to support profitability.

• Backlog is expected to deliver €119m of 2025 revenue, including €13m from Sweden; potential execution phases of projects still in development are excluded.

• 2024–2027 targets include EBITA margin above 5%, annual revenue growth of 5–10% after 2024, and net debt/EBITDA below 2.5.