SinterCast (SINT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue fell 19% year-over-year to SEK 32.6 million, mainly due to a high-volume program stoppage and softer commercial vehicle demand in Europe and North America.

• Operating margin improved to 40.4% from 35.5% in Q3 2023, driven by cost reductions and efficiency gains.

• Cashflow from operations increased 20% in Q3 and 28% year-to-date, supported by improved working capital and reduced accounts receivable.

• Installation order intake July–October exceeded SEK 9 million, surpassing historical full-year averages and supporting a strong outlook.

Financial highlights

• Q3 2024 revenue: SEK 32.6 million (Q3 2023: SEK 40.3 million); recurring revenue accounted for 92.3%.

• Q3 operating result: SEK 13.2 million (Q3 2023: SEK 14.3 million); operating margin 40.4% (35.5%).

• Q3 EPS: SEK 1.45 (Q3 2023: SEK 2.00); Q3 result after tax: SEK 10.3 million (Q3 2023: SEK 14.2 million).

• YTD 2024 revenue: SEK 99.8 million (+1.4% YoY); operating result: SEK 33.7 million (+24% YoY); EPS: SEK 3.80.

• Gross margin Q3: 74.5% (Q3 2023: 76.4%); YTD: 73.3% (2023: 74.2%).

Outlook and guidance

• Near-term production volume expected to decrease by ~500,000 Engine Equivalents due to program stoppage and market softness; Q4 2024 will be the first full quarter affected.

• Growth outlook remains positive, with ramp-up of Traton Group and FAW China programs expected to drive production to 5 million Engine Equivalents before end of 2026.

• Targeting double-digit CAGR in series production through 2030 and 7 million Engine Equivalents by 2029.

• Installation revenue in 2024 and 2025 projected to exceed historical averages.