Lehto Group (LEHTO) Q4 2024 earnings summary

Executive summary

• Transitioned from construction to energy construction after ending construction business and confirming a restructuring program.

• Major subsidiaries declared bankrupt; parent company reoriented to energy solutions and electricity storage.

• Trading in shares suspended since February 2024; plans to transfer to First North Growth Market delayed to late 2025.

• Significant management and board changes, including new CEO and board composition.

Financial highlights

• Net sales from continuing operations fell to EUR 1.1 million in 2024 from EUR 4.5 million in 2023, mainly from property rental and material sales.

• Operating result from continuing operations was EUR -5.7 million, impacted by low turnover and restructuring costs.

• Result for the period was EUR -2.9 million, improved by EUR 6.2 million in debt reductions from the restructuring program.

• Cash and liquid assets at year-end were EUR 2.2 million, up due to a new EUR 2.5 million convertible bond.

• Equity ratio improved to 8.2% at year-end 2024 from -12.1% in 2023.

Outlook and guidance

• No precise estimate for 2025 net sales or operating result due to business uncertainties.

• Aims to build significantly more electricity storage capacity in 2025, targeting EUR 25 million net sales and >10% operating margin by 2028.

• Initial phase working capital needs to be managed through capital investments as per restructuring program.