Svitzer Group (SVITZR) Q4 2024 earnings summary

Executive summary

• Achieved 9% revenue growth in constant exchange rates and increased EBITDA margin to 29.9% for 2024.

• Free cash flow rose significantly, supporting a proposed dividend of DKK 8 per share.

• Completed demerger from Maersk and separate listing, while implementing new contracts and expanding operations.

• Operational highlights include delivery of the first TRAnsverse tug with 15% fuel efficiency gains and orders for additional innovative tugs.

• Major contract wins: five-year Panama Canal contract and nine-year Oman LNG contract, plus ongoing regional contract renewals.

Financial highlights

• Revenue grew from DKK 5.8 billion to DKK 6.3 billion, mainly from tariff increases and new contracts.

• EBITDA increased by DKK 193 million to nearly DKK 1.9 billion, with margin rising from 29.3% to 29.9%.

• Free cash flow surged from DKK 61 million to DKK 584 million, aided by reduced CapEx and 84% cash conversion.

• Net profit: DKK 377 million (DKK 507 million excluding separation and listing costs).

• Leverage ratio at year-end: 1.9x; net interest-bearing debt: DKK 3,438 million.

Outlook and guidance

• Revenue growth for 2025 guided at 1–5% in constant exchange rates, with flat harbor towage volumes and continued tariff increases.

• EBITDA expected to grow 0–7%, with margin maintained around 30%.

• CapEx guidance for 2025 is DKK 1.1–1.3 billion, reflecting higher maintenance needs and anticipated growth investments.

• Assumes stable competitive and geopolitical environment, with exchange rate volatility as a potential impact.