Nordic Flanges Group (NFGAB) Q2 2024 earnings summary

Executive summary

• Achieved positive EBIT for H1 2024 as planned, with improved gross margins and normalized order intake after an extraordinary H1 2023.

• Swedish operations saw lower sales due to loss of US orders but nearly doubled OEM share in Europe, boosting the order book.

• Cost savings from 2023 restructuring are now visible, with further efficiency measures underway.

• Finnish units remain profitable with growing OEM customer base.

Financial highlights

• Net sales for H1 2024 were SEK 122.3m, down 24% year-over-year due to a large one-off US order in 2023.

• EBITDA was SEK 6.3m (5.1% margin), up slightly from SEK 6.2m (3.9%) in H1 2023.

• EBIT was SEK 0.1m (0.1% margin), compared to SEK 0.8m (0.5%) in H1 2023.

• Net result was SEK -5.4m, an improvement from SEK -6.0m in H1 2023.

• Operating cash flow was SEK -6.0m, down from SEK 2.0m in H1 2023.

Outlook and guidance

• Focus remains on EBIT-level profitability and maintaining gross margins on international orders.

• The global flange market is expected to grow ~7% annually over the next five years, driven by the energy sector.

• Continued expansion in Europe and the US, with emphasis on OEM customers and higher-value products.