OEM International (OEM) Q2 2024 earnings summary

Executive summary

• Incoming orders rose 8% year-over-year to SEK 1,322 million in Q2 2024, with net sales up 3% to SEK 1,331 million.

• Operating profit fell 14% to SEK 175 million, and EBITA declined 12% to SEK 185 million, reflecting weaker gross margins and higher costs.

• Profit after tax decreased 11% to SEK 139 million, with EPS at SEK 1.01 compared to SEK 1.13 last year.

• Order book at June 30, 2024, was SEK 903 million, down 11% year-over-year but still above pre-pandemic levels.

Financial highlights

• For January–June 2024, incoming orders rose 6% to SEK 2,673 million, and net sales were marginally higher at SEK 2,662 million.

• EBITA margin for Q2 was 13.9% (down from 16.2%), and operating margin was 13.2% (down from 15.7%).

• Return on equity for Q2 was 7.1% (9.3% last year); trailing twelve-month ROE was 29%, above the 25% target.

• Equity/assets ratio improved to 70% from 62% a year ago.

• Cash and cash equivalents at period end were SEK 311 million, up from SEK 52 million last year.

Outlook and guidance

• Strong order intake and higher demand compared to the second half of last year provide a positive start to 2024.

• Management emphasizes the need to focus on value creation and operational efficiency amid margin pressure.