Prevas (PREV) Q2 2024 earnings summary

Executive summary

• Q2 2024 turnover increased by 4.8% to 395.6 MSEK, driven by price increases, project deliveries, and over 60% organic growth.

• EBITDA/EBITA reached 36.2 MSEK with a 9.2% margin, marking the best Q2 performance to date.

• Regulatory approval and completion of the Enmac acquisition expanded operations into Finland, creating a Pan-Nordic group.

• Cash flow from operating activities rose 26% year-over-year to 63.1 MSEK.

• The market remained challenging, but active cost control and resource reallocation supported profitability.

Financial highlights

• Q2 2024 net turnover: 395.6 MSEK (up from 377.7 MSEK in Q2 2023); EBITA: 36.2 MSEK (9.2% margin); EBIT: 31.8 MSEK (8.0% margin), impacted by 4.3 MSEK in acquisition-related items.

• EPS after dilution increased by 5.8% to 2.01 SEK per share.

• Cash at end of Q2 was 120 MSEK, up from 60 MSEK last year; equity ratio at 58.2%.

• Net debt/EBITDA improved to -0.38, well below the 2x target.

• Dividend payout in Q2: 62.6 MSEK.

Outlook and guidance

• Management is optimistic, citing operational improvements, positive market signals, and strong positioning in sectors like green transition, cybersecurity, and defense.

• Anticipates increased demand as interest rates decline and PMIs improve.

• Continued focus on acquisitions and further expansion, leveraging a solid financial platform.