Sdiptech (SDIP) Q3 2024 earnings summary

Executive summary

• Net sales grew 7% year-over-year in Q3 2024, with 1% organic growth and significant contribution from acquisitions; year-to-date sales up 17%, 6% organic.

• Adjusted EBITA for Q3 was SEK 231 million, flat year-over-year, with organic EBITA down 8% and margin declining to 19.1% from 20.5%.

• Divested or initiated sale of Central European elevator business, incurring a SEK 53 million write-down and restructuring costs.

• Announced or completed acquisitions including Eagle Automation Systems, JR Industries, and Water Tech of Sweden, contributing to acquired EBITA.

• Reorganizing from two to four business areas from January 2025 to enhance transparency, focus, and growth alignment.

Financial highlights

• Q3 2024 net sales: SEK 3,830 million (up from SEK 3,280 million in Q3 2023); adjusted EBITA for Q3 at SEK 231 million, flat year-over-year.

• Year-to-date adjusted EBITA up 13% to SEK 751 million; margin at 19.6%.

• Profit after tax for Q3 was SEK 91 million, with EPS at SEK 2.28 (down from SEK 3.34 in Q3 2023).

• Cash flow from operations SEK 167 million in Q3, with 67% cash conversion; year-to-date cash conversion at 74%.

• Net debt/adjusted EBITDA at 2.09x as of Q3 2024.

Outlook and guidance

• Continued solid demand and resilience to cyclical changes expected, with a strong acquisition pipeline and favorable M&A climate.

• Targeting 100–120 MSEK acquired EBITA on a rolling 12-month basis in 2024.

• Q4 2024 faces tough comparables due to strong Q4 2023 performance.

• New organizational structure aims to leverage growth trends in supply chain, energy, water, and security.