Sitowise Group (SITOWS) Q4 2024 earnings summary

Executive summary

• Net sales declined by 8.5% to EUR 192.9 million in 2024, with a 7.6% drop in Q4 and negative organic growth of -10.1%.

• Adjusted EBITDA/EBITA margin fell to 2.4% in Q4 and 5.0% for the year, both below expectations, mainly due to weak performance in buildings and Sweden.

• Cash flow from operations remained strong at EUR 21.5 million for the year, despite lower sales and negative operating results.

• EPS was negative at -0.08 for 2024, leading to a proposal of no dividend payment.

• Three acquisitions in growth areas supported profitability and are expected to contribute further in the coming year.

Financial highlights

• Q4 net sales were EUR 48.8 million, down 7.6% year-over-year; full-year net sales were EUR 192.9 million, down 8.5%.

• Order book at year-end was EUR 151 million, with about EUR 12 million in paused projects, mainly in buildings.

• Net sales from growth segments (energy, industry, sustainability, security) represented about 25% of revenue in 2024, growing at double-digit rates.

• Infra's net sales grew 2.6–4.2% year-on-year in Q4, now 37% of group sales; buildings declined 15–18.9% and now 28% of group sales; digital solutions stable at 16%.

• Net sales in Sweden declined 12.3–17% year-on-year in Q4, about one-fifth of group sales.

Outlook and guidance

• Market environment in 2025 expected to remain mixed, with strong demand in green transition, security, and digitalization, but continued weakness in building markets.

• Recovery in construction markets likely delayed to late 2025 or 2026; no financial guidance issued due to high uncertainty.

• Key priorities: improve profitability, maintain strong cash flow, and diversify into growth areas.

• Long-term targets: >10% annual net sales growth (including acquisitions), adjusted EBITA margin ≥12%, net debt/adjusted EBITDA ≤2.5x (except temporarily for acquisitions).