Nimbus Group (BOAT) Q3 2024 earnings summary

Executive summary

• Q3 sales declined 20% year-over-year to SEK 378 million, with significant weakness in the European market and ongoing losses in the value boats segment; organic growth was -19%.

• EBITA before restructuring costs was SEK -11 million, and a SEK 55 million restructuring provision led to reported EBITA of SEK -69 million.

• Order intake increased 18% year-over-year in Q3, with notable contributions from new product launches and a major FMV contract.

• Major new orders include a framework agreement with FMV for up to 100 Alukin work boats, potentially worth SEK 400 million.

• Production of new models (Nimbus 495, Aquador 400 HT) commenced, and the US remains the largest market.

Financial highlights

• Net sales for Q3 were SEK 378 million, a 20% decrease year-over-year; LTM net sales were SEK 1,706 million, down 9%.

• EBITA for Q3 was SEK -69 million, including a SEK 55 million restructuring provision; EBITA pre-restructuring was SEK -11 million.

• Operating cash flow for Q3 was SEK -69 million, mainly due to reduced prepayments and higher inventory.

• Net working capital increased to SEK 563 million, up SEK 15 million from the previous quarter.

• Gross margin held steady at 12.5% in Q3; premium product margins improved, but overall margins pressured by low volumes.

Outlook and guidance

• Financial targets remain unchanged: midterm growth above 10%, EBITDA/EBITA margin of 10%, no financial debt except for property, and a dividend policy of 30% of net result.

• Management expects gradual positive effects from Finnish restructuring, estimating annual earnings improvement of about SEK 50 million when fully implemented.

• Order intake rose 18% year-over-year in Q3, indicating potential stabilization, with new product launches and professional segment opportunities supporting future growth.

• The European market remains soft, but the Nordics may have bottomed out.