Tempest Security (TSEC) Q4 2024 earnings summary

Executive summary

• 2024 marked by significant write-downs and high start-up costs during a year of strategic transformation, with strong organic growth in core operations and a focus on home markets.

• Divestment of US and Turkish operations, restructuring in Denmark, and a new sales organization in Sweden aimed at improving profitability.

• Bevakning (Security) segment achieved nearly 36% organic growth, now representing 85% of group revenue.

Financial highlights

• Net sales increased by 11% to SEK 485.6m for the year and 11% to SEK 122.3m in Q4, compared to the same periods last year.

• EBITDA for 2024 was SEK -2.6m (20.2m), with an EBITDA margin of -0.5% (4.6%). Adjusted EBITDA was SEK 0.3m (24.5m).

• Operating income (EBIT) was SEK -49.7m (8.1m) for the year, with adjusted EBIT at SEK -46.9m (13.3m).

• Net result from continuing operations was SEK -53.1m (3.1m) for the year; adjusted net result excluding goodwill impairment was SEK -19.9m.

• Q4 net result from continuing operations was SEK -44.8m (-1.9m); adjusted for goodwill impairment, SEK -11.6m.

• Cash flow from operating activities before working capital changes was SEK -4.7m (14.0m) for the year.

Outlook and guidance

• 2025 expected to bring continued growth and improved profitability, supported by cost-saving programs and a more focused organization.

• Ongoing review to further optimize structure and reduce overhead, with a focus on core markets and business areas.