Seco (IOT) Q4 2024 earnings summary

Executive summary

• FY24 net sales reached €183.5 million, down 12.5–13% year-over-year, outperforming most sector peers and exceeding initial guidance.

• Clea business contributed €21.3 million, representing 11.6–12% of sales, stable or slightly up in incidence year-over-year.

• Adjusted gross margin remained strong at 52.7%, stable year-over-year and improving quarter-over-quarter.

• Adjusted EBITDA was €28.2 million (15.4% of sales), down 44.2% year-over-year, with profitability rebounding in Q4.

• Net financial position improved by €11–15.6 million, reducing leverage to 1.5x and net debt to €41.3 million.

Financial highlights

• Net sales declined to €183.5 million from €209.8 million in FY23, mainly due to customer destocking.

• Adjusted gross margin was €96.8 million (52.7%), nearly flat versus prior year.

• Adjusted EBITDA dropped to €28.2 million (15.4% of sales) from €50.6 million (24.1%) in FY23.

• Adjusted net income was €1.4 million (0.7% of sales), down from €22.9 million (10.9%) in FY23.

• Net financial expenses decreased by €3.2 million year-over-year.

Outlook and guidance

• Revenue growth expected to resume in 2025, with Q1 revenue projected above €47 million and gross margin guidance above 50%.

• Growth to be driven by new product pipeline, increased project leads, and Clea IoT software adoption.

• CapEx to remain at €20–22 million per year for the next three years.

• Working capital optimization to continue, though Q4 levels may not be fully sustainable.

• Positive book-to-bill ratio and backlog trends signal end of OEM inventory adjustment.