Sweco (SWEC) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of SEK 30,676 million in 2024, with 5% organic and 3% acquired growth, and Q4 net sales of SEK 8,100 million, up 5% year-over-year.

• EBITA exceeded SEK 3 billion, up 20% year-over-year, with a full-year margin of 10% and Q4 margin of 11.1%.

• All business areas improved EBITA, with 7 of 8 showing organic growth in Q4.

• Efficiency measures and higher billing ratios drove profitability; order backlog strengthened with major project wins.

• Board proposes a dividend increase to SEK 3.30 per share.

Financial highlights

• Q4 EBITA was SEK 901 million, up 44% year-over-year, with a margin of 11.1%.

• Full-year operating cash flow improved to SEK 4,062 million from SEK 2,504 million.

• Net debt reduced to SEK 1,521 million, leverage at 0.4x, and available liquid assets of SEK 5,294 million.

• Dividend proposed at SEK 3.30 per share, a 12% increase and payout ratio between 50% and 57%.

• M&A cash outflows decreased to SEK 170 million from SEK 1,686 million.

Outlook and guidance

• Entered 2025 with positive momentum, strong financial position, and focus on efficiency, billing ratio improvement, and growth opportunities, especially in the green transition.

• M&A agenda to be accelerated across all markets.

• Calendar effects in 2025 expected to result in 8 fewer working hours compared to 2024.

• No specific forecasts provided for billing ratio or margin improvements, but gradual progress expected.

• Demand expected to follow macroeconomic trends with a lag.