OEM International (OEM) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw incoming orders up 8% to SEK 1,185 million and net sales up 2% to SEK 1,222 million compared to Q3 2023.

• Operating profit increased 5% to SEK 195 million, EBITA rose 6% to SEK 204 million, and profit after tax grew 5% to SEK 152 million year-over-year.

• Growth was driven by acquisitions (+3% to sales), while currency effects were negative (-1.5%). Organic growth was marginal.

• Order book at quarter-end was SEK 881 million, down 5% year-over-year but higher than December 2023.

Financial highlights

• EBITA margin improved to 16.7% (16.1% in Q3 2023); operating margin reached 16.0% (15.5%).

• Earnings per share for Q3 were SEK 1.09 (1.05); for Jan–Sep, SEK 3.23 (3.44).

• Cash flow from operating activities in Q3 was SEK 108 million (127); cash and cash equivalents at period-end were SEK 407 million (112).

• Equity/assets ratio at 71% (66%); return on equity for Q3 was 6.7% (7.7%), trailing twelve months 28%.

Outlook and guidance

• Management expects no sudden turnaround in the economic situation but remains confident in further improving the Group’s market position.

• The strong financial position enables continued acquisitions when opportunities arise.