Svitzer Group (SVITZR) Q3 2024 earnings summary

Executive summary

• Revenue grew 9–9.4% year-over-year in Q3 2024, with adjusted EBITDA up 12.7–14% and margin rising to 29.2%, maintaining trajectory toward full-year guidance.

• All expiring terminal towage contracts were renewed, with new five-year contracts started in Brazil and Liberia, supporting commercial momentum.

• Delivery of the first TRAnsverse tug and order for the world's first battery-methanol hybrid tug, with further orders for fleet renewal and sustainability.

• Solid performance across all regions, with Australia and Europe showing significant revenue and EBITDA increases, and Americas and AMEA also contributing positively.

• Company remains on track to meet full-year outlook, supported by ongoing contract renewals and operational milestones.

Financial highlights

• Q3 2024 revenue reached DKK 1,545m (up from DKK 1,415m), mainly due to tariff increases and new contracts.

• Adjusted EBITDA rose 12.7–14% to DKK 452m, with margin up 0.9 points to 29.2%.

• Free cash flow improved by DKK 111m year-over-year in Q3, with gross CAPEX down 33% to DKK 222m.

• Separation and listing costs totaled DKK 22m in Q3, with a full-year expectation of DKK 130m.

• Special operation jobs contributed to results in several regions.

Outlook and guidance

• Full-year 2024 revenue growth expected at the upper end of 6–7.5% in constant exchange rates.

• Adjusted EBITDA guidance of DKK 1,775–1,875m, with expectations to finish at the top end, excluding separation and listing costs.

• Gross CAPEX guidance maintained at DKK 900–1,100m, with growth CAPEX at DKK 400–500m and fleet renewal/docking at DKK 500–600m.

• Q4 2024 expected to be flat year-over-year due to a strong Q4 2023 comparison.

• Excludes separation and listing costs related to the demerger, expected at DKK 130m (operating) and DKK 31m (balance sheet).