NCAB Group (NCAB) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined, mainly due to weak European demand, while order intake improved in Nordics, North America, and East segments.

• Gross margin remained healthy despite lower revenue and EBITA, with EBITDA/EBITA margin falling due to lower topline and integration of lower-margin acquisitions.

• Five acquisitions in 2024, including DVS Global, expanded presence in Belgium, Switzerland, Austria, Denmark, and Italy.

• Book-to-bill ratio stayed positive at 1.09 in Q4, with order intake up 4% year-over-year.

• Board proposes a dividend of SEK 1.10 per share, unchanged from last year.

Financial highlights

• Q4 net sales decreased by 6% to SEK 830 million; organic growth -11% in USD.

• Q4 EBITDA/EBITA dropped to SEK 72 million (margin 8.6%), down 40% year-over-year.

• Q4 gross margin at 35.9% (down from 38.2%); full-year gross margin up to 37.1% (from 36.0%).

• Full-year net sales down 12% to SEK 3,614 million; organic growth -15% in USD; EBITDA/EBITA SEK 450 million (margin 12.4%).

• Operating cash flow for Q4 at SEK 45.3 million; full year at SEK 354 million, both down nearly 50% year-over-year.

Outlook and guidance

• Expectation for European margins to recover from Q4 lows as year-end effects reverse in Q1.

• Gradual improvement anticipated in industrial and automotive segments, with continued strength in data centers, telecom, and aerospace/defense.

• Global PCB market projected to grow at 5.6% CAGR, above historical average, with positive trends in 2025.

• No significant pre-ordering ahead of new North American tariffs; potential for more supply to shift outside China.

• Weak start to 2025 anticipated in major European markets, but gradual improvement expected in line with macroeconomic trends.