Nordic Flanges Group (NFGAB) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 declined 16% year-over-year to 228.8 MSEK, mainly due to a one-time US order in 2023, but the order book entering 2025 is above the three-year average.

• Strategic reorganization and cost-saving measures, including management changes and production adjustments, are expected to yield annual savings of 2.5 MSEK and further 2.4 MSEK from facility efficiencies in 2025.

• EBITDA for 2024 was 1.1 MSEK (0.5% margin), including -3.2 MSEK in one-off and restructuring costs; EBIT was -10.8 MSEK.

• Net result for 2024 was -19.8 MSEK, with EPS at -0.11 SEK.

• The company qualified as a Tier 1 supplier for MRC Global and Exxon Mobil AML, strengthening its US market position.

Financial highlights

• Q4 2024 revenue was 54.1 MSEK, down 2% from Q4 2023; full-year revenue was 228.8 MSEK, down 16% year-over-year.

• EBITDA for Q4 was -4.5 MSEK (-8.3% margin); full-year EBITDA was 1.1 MSEK (0.5% margin), both including -0.8 MSEK in one-off items and -2.3 MSEK in restructuring costs.

• EBIT for Q4 was -7.4 MSEK (-13.7% margin); full-year EBIT was -10.8 MSEK (-4.7% margin).

• Operating cash flow for 2024 was -0.8 MSEK, mainly due to working capital tied to new customer relationships and restructuring.

• Net debt decreased by 17.4 MSEK during 2024, supported by a 21 MSEK rights issue and loan repayments.

Outlook and guidance

• Order book at the start of 2025 is higher than the average of the past three years, indicating improved sales prospects.

• Management expects significant cost savings (totaling 5.4 MSEK annually) and improved profitability in 2025, driven by restructuring, local cost reductions, and increased OEM share.

• Market recovery is anticipated in 2025, with further sales growth expected from major customers and new US market opportunities.

• Potential impact from US tariffs on Asian and European imports remains uncertain.