SJ (SJ) Q3 2024 earnings summary

Executive summary

• Achieved a 41% increase in operating profit to 361 MSEK for Q3 2024, driven by higher ticket revenues and new traffic contracts compared to Q3 2023.

• Net sales rose 31% year-over-year to 3,406 MSEK, mainly due to new and existing public service contracts.

• Customer satisfaction index improved sequentially but was lower year-over-year; employee satisfaction increased.

• Major investments in new trains and modernization of the fleet continued, with nearly 1 billion SEK invested in 2024.

Financial highlights

• Operating margin for Q3 2024 was 10.6% (up from 9.6% in Q3 2023).

• Net income for Q3 2024 was 267 MSEK, up from 213 MSEK in Q3 2023.

• Return on operating capital reached 9.8% (target >7%).

• Net debt/equity ratio at 0.67, within the target range of 0.5–1.0.

• Cash flow from operations increased to 577 MSEK (37 MSEK in Q3 2023).

Outlook and guidance

• Continued focus on profitability to enable further investments in fleet and infrastructure.

• Ongoing withdrawal from unprofitable lines, including night trains Göteborg–Umeå and regional Stockholm–Uppsala, by December 2024.

• Preparing to take over night train operations Stockholm–Luleå/Narvik from December 2024.