Nilfisk (NLFSK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 2.9% year-over-year to €240.6m, with negative organic growth of 0.8%, mainly due to declines in Professional and Service segments, especially in the Americas and APAC, partially offset by strong EMEA, Consumer, and Specialty performance.

• Specialty and Consumer businesses delivered robust organic growth of 20.1% and 22%, respectively, driven by innovation and strong demand in EMEA.

• EBITDA before special items was €30.4m, margin stable at 12.6%, despite revenue decline and increased overhead costs.

• Gross margin improved to 42.4% from 41.2% in Q3 2023, supported by price management and favorable product mix.

• Financial targets for 2026 regarding revenue and EBITDA margin were removed due to underperformance and revised outlook.

Financial highlights

• Q3 2024 revenue was €240.6m, down from €247.8m in Q3 2023, with reported growth of -2.9%.

• Organic revenue growth was -0.8% year-over-year; excluding temporary SAP impact, growth was 1.9%.

• Gross profit reached €101.9m, with gross margin up 1.2 percentage points year-over-year to 42.4%.

• Free cash flow for Q3 was €7.4m, down €22.4m year-over-year, mainly due to higher working capital and capital investments.

• Net interest-bearing debt decreased to €257.7m, with gearing at 1.9x, within target range.

Outlook and guidance

• Organic revenue growth for 2024 is expected in the range of 1% to 3%, revised down from 3%-6%, with EBITDA margin before special items between 13% and 14%.

• CapEx is projected to be around 4% of revenue, with focus on product investments.

• Special items are expected to be mid-single-digit million euros.

• Demand in the Americas remains uncertain for 2024.

• Two 2026 financial targets (revenue and EBITDA margin) have been removed due to macroeconomic headwinds.