Nurminen Logistics (NLG1V) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 decreased by 18.1% to EUR 104.8 million, mainly due to geopolitical disruptions impacting Baltic operations and the Suez Canal security threat.

• Despite lower sales, comparable operating profit margin improved to 18.2% (16.8% in 2023), driven by cost management and strong railway business performance.

• Major strategic moves included the acquisition of Essinge Rail AB in Sweden and ILP-Group Logistics Oy in Finland, supporting international growth.

• The company maintained a strong balance sheet, with an equity ratio of 40.7% and positive cash flow from operations of EUR 11.9 million.

• Board proposes a capital repayment of up to EUR 0.06 per share from the reserve for invested unrestricted equity.

Financial highlights

• EBITDA for 2024 was EUR 24.7 million (23.6% of net sales), down from EUR 38.4 million (30%) in 2023.

• Operating profit was EUR 19.3 million (18.4% margin), compared to EUR 33.1 million (25.9%) last year.

• Result for the period totaled EUR 13.1 million, with EPS at EUR 0.09 (vs. EUR 0.18 in 2023).

• Q4 net sales fell 33.8% year-over-year to EUR 22.9 million; Q4 comparable operating margin rose to 16.1%.

• Cash flow from operating activities was EUR 11.9 million, and net gearing improved to 71.7% (77.6%).

Outlook and guidance

• Net sales and comparable operating result are expected to increase in 2025, supported by growing rail operations and strengthened market position.

• Demand for rail freight is anticipated to rise, driven by environmental regulations and improved financing conditions.

• Long-term customer agreements ensure stable profitability for the coming years.