NOVOTEK (NTEK) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased to 261.4 MSEK from 241.7 MSEK year-over-year, with operating income rising to 23.8 MSEK from 19.0 MSEK.

• Net income for H1 2024 was 18.6 MSEK, up from 14.0 MSEK year-over-year; EPS reached 1.7 SEK versus 1.3 SEK.

• Cash flow from operations improved to 39.8 MSEK from 20.4 MSEK year-over-year.

• Market interest in Novotek's solutions, especially in Industrial Data Operations, continues to grow despite delayed customer decisions on large projects.

• Acquisition of 70% of Austrian T&G expands Novotek's presence to Austria post-period.

Financial highlights

• Q2 2024 revenue was 125.1 MSEK, nearly flat compared to 125.9 MSEK in Q2 2023; operating income rose to 10.3 MSEK from 9.8 MSEK.

• Q2 2024 net income was 8.1 MSEK, up from 7.1 MSEK; EPS was 0.8 SEK versus 0.7 SEK.

• Order intake for H1 2024 reached 251.9 MSEK, up from 239.5 MSEK year-over-year.

• Operating margin for H1 2024 improved to 9.1% from 7.9% year-over-year.

• Cash and cash equivalents at period end were 109.1 MSEK, up from 93.2 MSEK.

Outlook and guidance

• Macroeconomic uncertainty continues to prolong customer decision processes, with variations across geographies and industries.

• Strong market interest persists for Novotek's digitalization and efficiency solutions.