SinterCast (SINT) Q4 2024 earnings summary

Executive summary

• Revenue for Q4 2024 was SEK 35.8 million, nearly flat year-over-year, with strong installation revenue offsetting a 16% decline in series production volume.

• Full-year 2024 revenue reached SEK 135.6 million, up 1% from 2023, with recurring revenue accounting for 90.7% of the total.

• Operating result for Q4 was SEK 9.5 million (down 39% year-over-year), impacted by SEK 2.5 million in currency revaluation losses; excluding currency effects, operating result was SEK 12.0 million.

• Earnings per share for Q4 was SEK 1.04 (down 52% year-over-year); full-year EPS was SEK 4.85 (down 18%), mainly due to higher tax expense.

• Cashflow from operations improved 25% in Q4 and 31% for the full year, driven by better working capital management.

Financial highlights

• Q4 recurring revenue: SEK 28.8 million (down 14% year-over-year); installation revenue: SEK 6.8 million (up from SEK 2.1 million).

• Gross margin remained strong at 70.4% in Q4 and 72.5% for the year.

• Operating margin for Q4 was 26.7% (down from 43.4%); full-year operating margin was 31.9%.

• Result after tax for 2024 was SEK 34.3 million (down from SEK 42.1 million), mainly due to SEK 9.0 million in tax expense.

• Proposed ordinary dividend of SEK 6.00 per share and extraordinary dividend of SEK 1.00 per share for 2024.

Outlook and guidance

• Series production baseline reset to ~3.2 million Engine Equivalents after a high-volume program stoppage and softer commercial vehicle demand.

• Recovery expected in 2025 as new engine programs ramp up in China and Europe; installation revenue in 2025 expected to exceed 2024.

• Double-digit compounded annual series production growth targeted through 2030, with milestones of 5 million Engine Equivalents by 2026 and 7 million by 2029.

• Gross margin expected to remain above 70%; operating margin targeted to exceed 40% by 2028.