Solwers (SOLWERS) Q4 2024 earnings summary

Executive summary

• Revenue reached EUR 78.3 million in 2024, growing 19% year-over-year, driven by acquisitions and organic expansion in Finland, Sweden, and entry into Poland.

• EBITDA margin was 7.0%, below the midterm target of 12%, impacted by increased costs, one-off items, and write-downs.

• Six to seven acquisitions were completed, expanding presence in Sweden, Finland, and establishing a subsidiary in Poland.

• Preparations for a possible transfer to the Nasdaq main list progressed, pending Board approval.

• Board proposes a dividend of EUR 0.024 per share, totaling EUR 244,000, in line with policy to pay 20-40% of profit.

Financial highlights

• EBITDA for 2024 was between EUR 5.5 million (7% margin) and EUR 6.5 million (8.3% margin); EBITA margin was 7.0%.

• EBIT for 2024 was EUR 2.7 million (3.5% margin), down from 7.3% in 2023.

• Net profit declined to EUR 1.2 million (1.5% margin), with EPS at EUR 0.11 (down from EUR 0.32).

• Cash and cash equivalents at year-end were EUR 11.6 million; net cash flow from operations was EUR 4.3 million.

• Headcount increased to 724 from 635, mainly due to acquisitions.

Outlook and guidance

• Order backlog improved towards year-end, with positive signs of recovery in Finland and stable demand in Northern Sweden.

• Market recovery is expected to strengthen in the second half of 2025, with focus on acquisitions, organic growth, cost-cutting, and profitability improvement.

• Midterm targets remain: >20% revenue growth, >12% EBITDA/EBITA margin, and >40% equity ratio.

• Market uncertainty limits future visibility, but company expects to benefit from general recovery.