Nordic Waterproofing (NWG) Q4 2024 earnings summary

Executive summary

• Net sales declined 12% year-over-year in Q4 to SEK 925m, driven entirely by organic contraction, with full-year sales down 8% to SEK 4,091m.

• EBITDA fell to SEK 71m (from SEK 89m), and Q4 EBIT dropped to SEK 28m (from SEK 47m), with full-year EBIT at SEK 278m (down 5%).

• ROCE remained stable at 10.1%, slightly below the long-term target of 13%.

• The board recommends accepting Kingspan's SEK 182.50 per share cash offer, with Kingspan holding 87.4% of shares.

• Board proposes a SEK 4.00 per share dividend, representing 57% of 2024 net profit.

Financial highlights

• Q4 net sales: SEK 925m (-12%); full year: SEK 4,091m (-8%).

• Q4 EBITDA: SEK 71m (-21%); full year: SEK 432m (-7%).

• Q4 gross margin: 24.2% (down from 24.6%); full year: 26.4% (up from 25.0%).

• Net debt reduced to SEK 697m (from SEK 724m); net debt/EBITDA at 1.6–1.7x.

• Cash flow from operations for 2024 was SEK 288m, down 43% year-over-year.

Outlook and guidance

• Commercial new build and renovation demand expected to remain stable in early 2025; residential new build to stay weak except in Denmark.

• Market conditions anticipated to improve later in 2025, except in Finland where stagnation is expected.

• Continued focus on selective acquisitions and debt management, especially in partnership with Kingspan.