Nordic Flanges Group (NFGAB) Q3 2024 earnings summary

Executive summary

• Net sales for January–September 2024 were SEK 174.7 million, down 20% year-over-year due to a large one-time US order in 2023; order backlog at October start is above the three-year average.

• EBITDA improved to SEK 5.6 million (3.8), with margin rising to 3.2% (1.8%) despite lower sales, driven by better gross margins and cost reductions.

• EBIT was SEK -3.4 million (-4.3), with EBIT margin stable at -2.0% year-over-year; Q3 EBIT improved to SEK -3.6 million from -5.1 million.

• Swedish operations nearly doubled their order book and increased OEM share from 23% to 64%, with significant cost savings from 2023 restructuring.

• Finnish units remained profitable, with Ferral Components OY showing strong order intake, while Nordic Flanges OY saw slightly weaker orders in autumn.

Financial highlights

• Net sales: SEK 174.7 million (217.7), -20% year-over-year.

• EBITDA: SEK 5.6 million (3.8), margin 3.2% (1.8%).

• EBIT: SEK -3.4 million (-4.3), margin -2.0% (-2.0%).

• Net result: SEK -10.5 million (-12.7), EPS SEK -0.07 (-0.15).

• Operating cash flow: SEK -6.8 million (6.4), impacted by new customer capital tie-up.

Outlook and guidance

• Focus remains on improving EBIT-level profitability in the short term.

• Order backlog and OEM share are strong, with further cost savings expected from ongoing efficiency measures and automation.

• US market expansion continues, leveraging Tier 1 supplier status with MRC Global and NORSOK approval.

• Long-term investment plan for automation and capacity increases is ongoing; unmanned shift in Sweden to start in November.