Sitowise Group (SITOWS) Q3 2024 earnings summary

Executive summary

• Net sales declined by 8.4% year-over-year to €41.8 million in Q3 2024, with adjusted EBITDA/EBITA margin at 5.8% and organic growth at -10% to -10.5%.

• Infra and Digital Solutions outperformed their markets in both net sales and profitability, while Buildings and Sweden segments remained weak.

• Strategic restructuring and resource optimization in Sweden and Buildings, including headcount reductions and temporary layoffs, targeted €3.5 million in annual savings.

• Acquisition of LandPro Oy completed, and internal AI tool Saga AI launched to enhance efficiency and support strategic initiatives.

• Order book at €154 million at quarter-end, including €12.5 million in projects on hold, down from €167 million year-over-year.

Financial highlights

• Adjusted EBITDA/EBITA margin fell to 5.8%, with adjusted EBITA at €2.4 million and operating profit at -€0.2 million.

• Result for the period was -€1.5 million, and earnings per share was -€0.04.

• Cash flow from operations improved year-over-year to -€0.3 million.

• Net debt/adjusted EBITDA increased to 5.0x, equity ratio stable at 44.6%.

• One-off restructuring costs of €1.2 million in Q3, with expected annual savings of €3.5 million.

Outlook and guidance

• Q4 expected to remain challenging, especially in Buildings, with market recovery for construction anticipated in H2 2025.

• Sweden's profitability expected to improve from Q4 onwards; medium- and long-term prospects remain positive, especially for Infra and Digital Solutions.

• Net sales for 2024 expected to decline, with adjusted EBITA margin below 2023; guidance for 2024 remains unchanged.