Ratos (RATO) Q4 2024 earnings summary

Executive summary

• Adjusted EBITA rose 23% in Q4 and 4% for the full year, with strong cash flows and improved margins despite a cautious market.

• Significant one-off items impacted comparability: SEK 1,656 million positive in Q4 2023 (Aibel goodwill reversal) and SEK 256 million negative in Q4 2024 (mainly Plantasjen restructuring, Knightec/Semcon merger, TFS).

• Strategic mergers completed: Knightec and Semcon formed Knightec Group; HENT and SSEA merged into Sentia.

• Plantasjen restructuring progressed as planned, with debt settlement proposals approved by courts and expected exit from reconstruction in February 2025.

• Acquisition of minority shares in Presis Infra, increasing holding from 72% to 97%.

Financial highlights

• Q4 net sales SEK 7,731 million, down 3% year-over-year; full-year net sales SEK 32,125 million, down 5%.

• Q4 adjusted EBITA up 23% to SEK 401 million; margin improved to 9% in core business and 5.2% overall.

• Full-year adjusted EBITA SEK 2,329 million, up 4%; margin at 7.2%.

• Cash flow from operating activities SEK 1,403 million in Q4, SEK 3,445 million for the year; cash conversion 350% in Q4.

• Board proposes dividend of SEK 1.35 per share, up from 1.25, representing 57% of adjusted net profit.

Outlook and guidance

• Management expects continued margin improvement and synergies from recent mergers.

• Order intake and backlog increased, positioning for continued growth despite weak markets.

• Targeting adjusted EBITA of at least SEK 3 billion by 2025; Q4 2024 LTM at SEK 2,329 million.

• Dividend payout ratio target 30–50% of profit after tax; proposal for 2024 at 57%.

• Focus remains on consolidating the group, increasing profitability, and reducing the number of companies.