NOTE (NOTE) Q4 2024 earnings summary

Executive summary

• Q4 performance aligned with December guidance, with notable fluctuations in the final weeks.

• Net sales for 2024 were SEK 3,901 million, down 8% from SEK 4,243 million in 2023; organic growth was -10% year-over-year, reflecting a temporary sector slowdown and customer inventory adjustments.

• Underlying profitability in Q4 was the second-best ever, with an adjusted operating margin of 10.5%.

• Operating cash flow after investments reached SEK 465 million, with a strong cash position and balance sheet.

• The board will decide on dividends or share buybacks for 2024 at the latest in connection with the 2025 AGM notice.

Financial highlights

• Q4 2024 sales were SEK 1,025 million (Q4 2023: SEK 1,080 million); organic growth -6% year-over-year.

• Full-year sales down 8% (10% excluding acquisitions), but margins held steady.

• Q4 adjusted operating margin was 10.5% (Q4 2023: 8.5%), the second highest ever reported.

• Gross margin for 2024 was 13.3% (2023: 12.1%); Q4 gross margin was 14.5% (Q4 2023: 9.7%).

• Equity ratio reached 51%, the highest level in recent history.

Outlook and guidance

• Q1 2025 sales expected to be similar to Q4 2024, with slightly higher volumes but lower component prices.

• Full-year 2025 sales guidance: SEK 3.9–4.3 billion, with steeper growth expected in the second half.

• Profitability guidance for 2025: 9.5%–10.5% margin, with potential upside if volumes recover.

• Order backlog for 2025 is down 2% year-over-year, reflecting cautious market sentiment.

• Strong cash flow expected to continue in the first half of the year due to ongoing inventory reductions.