Loomis (LOOMIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached SEK 7,624 million, up 2.9% year-over-year, with 5.5% organic growth and all-time high operating income (EBITA) of SEK 981 million and margin of 12.9%.

• All segments contributed to growth, with Automated Solutions and Loomis Pay delivering double-digit organic gains, while International business faced cyclical headwinds.

• Strong cash flow from operating activities at SEK 1,314 million (134% of EBITA), with share repurchases of SEK 200 million completed in Q3 and further buybacks authorized for Q4.

• Management changes announced for 2025: Alejandro Corominas to lead Europe and Latin America, Georges López to become Group COO.

• Restructuring in Europe and Latin America ongoing, with SEK 59 million in related costs.

Financial highlights

• EBITA for Q3 rose to SEK 981 million (814), with EBITA margin at 12.9% (11.0%); net income was SEK 481 million (421), and EPS before dilution at SEK 6.92 (5.92).

• Operating cash flow conversion reached 134% for Q3 and 122% on a twelve-month basis.

• Share repurchases totaled SEK 200 million in Q3, with a new buyback program of up to SEK 200 million authorized for Q4.

• Net debt/EBITDA at 1.58; equity ratio at 33.9%; return on capital employed at 14.9%.

• Items affecting comparability included SEK -59 million related to restructuring in Europe.

Outlook and guidance

• Full-year EBITA margin target of 12%-14% remains challenging due to restructuring delays in Europe and Latin America, but management remains committed to improvement.

• Expect more restructuring benefits in Q4 2024 and early 2025.

• Price increases expected to be lower in 2025 as inflation moderates, but cost pass-through remains feasible.

• Management continues to focus on operational efficiency, strategic M&A, and sustainability targets.

• No formal forecast provided for 2024.