Transtema Group (TRANS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 608.9m, down 14.6% year-over-year; organic growth -14.5%.

• Adjusted EBITA margin improved to 3.1% (3.0% last year); cash flow from operations at SEK 13.0m.

• Major new contracts signed, including a Nordic deal with GlobalConnect and a Swedish telecom supplier.

• Market remains challenging with lower demand, but gradual sales recovery expected in H2 2024.

Financial highlights

• Q2 net sales: SEK 608.9m (713.2m), -14.6% year-over-year; H1 net sales: SEK 1,108.5m (1,359.2m), -18.4%.

• Q2 EBITA: SEK 18.9m (14.5m), margin 3.1% (2.0%); H1 EBITA: SEK 14.7m (44.7m), margin 1.3% (3.3%).

• Adjusted H1 EBITA: SEK 21.8m (58.2m), margin 2.0% (4.3%), excluding SEK 7.1m one-off cost from IT disruption.

• H1 EBITDA: SEK 62.2m (95.4m), margin 5.6% (7.0%).

• H1 net result: SEK -13.9m (85.6m); EPS before dilution: SEK -0.35 (2.99).

Outlook and guidance

• Gradual sales recovery expected in H2 2024, with positive momentum from new contracts.

• Full effect of the GlobalConnect contract anticipated in early 2025.

• Ongoing efficiency measures in Sweden and Norway to improve productivity and margins.