Transtema Group (TRANS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales decreased by 2.1% year-over-year to SEK 590.5m, with organic growth flat at 0.3% after currency adjustment.

• Adjusted EBITA margin was 2.8% (3.5%), with improvement in Sweden but continued margin pressure in Norway.

• Cash flow from operations improved to SEK 7.9m in Q3 and SEK 83.4m for the nine months, mainly due to better working capital.

• Significant new contracts signed, including a SEK 250m annual telecom equipment deal in Sweden and a multi-year Nordic service agreement.

• Organizational changes in Norway and new executive appointments aim to drive efficiency and profitability.

Financial highlights

• Q3 net sales: SEK 590.5m (603.0m), -2.1% year-over-year; nine months: SEK 1,699.0m (1,962.2m), -13.4%.

• Adjusted EBITA Q3: SEK 16.3m (21.1m), margin 2.8% (3.5%); EBITA Q3: SEK 9.8m (5.3m), margin 1.7% (0.9%).

• EBITDA Q3: SEK 33.7m (31.2m), margin 5.7% (5.2%).

• Net income Q3: SEK 8.9m (28.0m); EPS Q3: SEK 0.23 (0.71).

• Cash flow from operations Q3: SEK 7.9m (1.2m); nine months: SEK 83.4m (38.5m).

Outlook and guidance

• Swedish market shows clear recovery and positive momentum into 2025, supported by new contracts.

• Norwegian market remains subdued, with recovery expected later in 2025; efficiency measures underway.

• Ongoing digitalization and organizational streamlining expected to improve productivity and reduce costs.