Sweco (SWEC) Q3 2024 earnings summary

Executive summary

• Net sales grew 6% to SEK 6,779 million in Q3 2024, with organic growth of 4% (calendar-adjusted) and EBITA up 5% to SEK 588 million, margin improving to 8.7%.

• Net sales exceeded SEK 30 billion on a rolling 12-month basis, up from SEK 20 billion five years ago.

• Six out of eight business areas delivered increased EBITA and organic growth.

• SBTi validated near-term climate targets, aligning with the Paris Agreement.

• Order backlog increased, with strong demand in energy, water, infrastructure, defence, and security, but continued weakness in residential and commercial buildings.

Financial highlights

• EBITA margin improved to 8.7% in Q3, up from 7.2% previous year.

• Net debt/EBITDA reduced to 1.1x from 1.5x, with net debt at SEK 3,533 million and available liquid assets of SEK 3,239 million.

• Cash flow from operating activities increased to SEK 1,697 million for Jan–Sep.

• Calendar effect added SEK 101 million to net sales and EBITA, though partially offset by vacation.

• Return on equity was 17.4% and return on capital employed 15.2% for Jan–Sep.

Outlook and guidance

• Continued focus on efficiency, profitability, and capturing growth in green transition, defence, and pharma segments.

• Ongoing M&A integration and evaluation of new opportunities, especially in Germany.

• Cautious recruitment, with focus on growth segments and no major redundancy plans currently.

• Q4 expected to have a slightly negative calendar effect due to fewer working hours.

• Geopolitical instability and economic downturn continue to impact markets, with some segments seeing increased demand and others remaining weak.