Midsummer (MIDS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased by 130% year-over-year to 27,348 TSEK, driven by higher panel sales and significant equipment deliveries.

• Cost-saving program halved admin and marketing expenses in Q3 2024 compared to last year, improving gross margin and operating result.

• Operating loss for Q3 2024 was -6,113 TSEK, a substantial improvement from -48,118 TSEK in Q3 2023; pre-tax loss was -9,883 TSEK.

• Strategic focus shifted to selling panels via partners and expanding equipment sales, with renewed interest in turnkey factory solutions.

• New CEO Eric Jaremalm appointed; collaboration with Saab to explore a 200 MW factory in Thailand announced post-period.

Financial highlights

• Q3 2024 net sales: 27,348 TSEK (11,898 TSEK Q3 2023); 9M 2024: 47,792 TSEK (34,938 TSEK 9M 2023).

• EBITDA for Q3 2024 was 663 TSEK, up from -39,673 TSEK in Q3 2023; 9M 2024 EBITDA was -41,814 TSEK.

• Net loss for Q3 2024: -12,118 TSEK (Q3 2023: -68,150 TSEK); EPS for Q3 2024: -0.05 SEK (-0.64 SEK Q3 2023).

• Cash flow for Q3 2024: -57,153 TSEK; 9M 2024: 18,185 TSEK.

• Soliditet (equity ratio) at 22.4% at Q3 2024, down from 41.8% a year earlier.

Outlook and guidance

• Focus on expanding production capacity in Sweden and globally, evaluating best financing options for long-term growth.

• Ongoing recruitment and ramp-up in Italy; SLIM-3 panel certified, targeting large markets in Europe and the US.

• Strategic shift to asset-light model by selling turnkey factories, aiming for stable margins despite lower equipment prices.

• Collaboration with Saab and interest from governments signal potential for international expansion and new megafactories.