NCAB Group (NCAB) Q3 2024 earnings summary

Executive summary

• Net sales declined 11% year-over-year to SEK 898 million, with order intake down 4% to SEK 887 million and book-to-bill at 0.99.

• Europe, especially Germany, remained weak, while North America and East segments showed growth and stability.

• Gross margin held steady at 36.4% despite lower topline and FX headwinds.

• EBITA fell 33% to SEK 118.5 million, with margin down to 13.2% from 17.5% last year.

• Four acquisitions were completed in Switzerland, Austria, Denmark, and Italy, supporting market consolidation and future growth.

Financial highlights

• Net sales: SEK 898 million, down 11% year-over-year; organic growth -8% in USD.

• EBITA: SEK 118.5 million, down 33% year-over-year; EBITA margin 13.2%.

• Earnings per share: SEK 0.27 (0.59 last year); profit after tax for Q3: SEK 50 million.

• Operating cash flow: SEK 119 million (260.4 million last year); working capital stable at 7.5%.

• Gross margin improved to 36.4% in Q3.

Outlook and guidance

• Market recovery in Europe delayed, especially in Germany; no significant turnaround expected in the next two to three quarters.

• North America and East segments anticipated to continue positive momentum.

• Ongoing focus on M&A, with a strong pipeline and recent acquisitions expected to contribute in Q4.

• Company remains focused on maintaining margins and cash flow, ready to expand when the market rebounds.

• Gross margin expected to remain above historical levels, though not all recent gains may be retained.