Netel (NETEL) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached MSEK 3,284, with organic growth of 3.1%, and all divisions contributing, led by Infraservices at 8.9% year-over-year.

• Order backlog hit a record MSEK 4,023, with strong demand in Power and Telecom and over half to be delivered in 2025.

• Adjusted EBITA for 2024 was MSEK 169, margin 5.2%, down from 5.7% last year.

• Divestment of Finnish operations underway, classified as discontinued, with expected closure in 2025 to focus on core markets.

• Strategic focus on operational efficiency, digitalization, and sustainability, including SBTi validation of climate targets.

Financial highlights

• Q4 net sales were MSEK 957 (+1.5%); full-year net sales MSEK 3,284 (+3.1%).

• Adjusted EBITA margin for Q4 was 6.0% (down from 6.9%); full-year margin 5.2%.

• Operating cash flow for 2024 was MSEK 115, down from MSEK 268 last year.

• Net debt at year-end was MSEK 745, with net debt/adjusted EBITDA at 3.2, above the target.

• Earnings per share for continuing operations were SEK 1.20; including discontinued, SEK -0.96.

Outlook and guidance

• Entering 2025 with a strong order backlog and new framework agreements to drive growth.

• Focus on profitability, cash flow, and margin improvement through efficiency and digitalization.

• No dividend proposed for 2024 to reinforce the balance sheet.