Talenom (TNOM) Q4 2024 earnings summary

Executive summary

• Net sales grew 3.7% to EUR 126.2 million in 2024, with EBITDA up 9% to EUR 34.8 million, mainly from Finland and Spain, while Sweden faced integration and software rollout challenges.

• The software business was separated as a strategic pillar, with non-core services like debt collection divested to focus on core accounting and software.

• Internationalization progressed, with under 70% of net sales from Finland and strong acquisition-driven growth in Spain.

• Economic downturn and integration issues in Sweden slowed organic growth, especially in Q4.

• Board proposes a maximum dividend of EUR 0.20 per share, split into two tranches.

Financial highlights

• Full-year net sales reached EUR 126.2 million (up 3.7%), with Q4 revenue down 2% year-over-year.

• EBITDA improved to EUR 34.8 million (27.5% margin), but Q4 EBITDA declined due to one-off costs and higher software investment depreciation.

• Operating profit (EBIT) for the year was EUR 11.4 million (up 43.6%), and net profit rose 81.2% to EUR 6.1 million.

• Earnings per share increased to EUR 0.13; proposed dividend up to EUR 0.20 per share.

• Investments in software and digital services totaled EUR 15.1 million; acquisitions EUR 2.7–3.2 million.

Outlook and guidance

• 2025 guidance: net sales EUR 130–140 million, EBITDA EUR 36–42 million.

• Profitability in Sweden expected to improve in H2 2025 as software roll-out and process harmonization take effect.

• Market conditions in Finland and Sweden expected to stabilize in H1 2025 and improve in H2.

• Strategic acquisitions in Spain expected to contribute EUR 2–4 million.

• Long-term targets: >20% annual net sales growth in software, >10% in services.