Transtema Group (TRANS) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw net sales rise 8.7% year-over-year to 789.7 MSEK, with organic growth of 9.0% adjusted for currency effects, driven by strong performance in Sweden, while Norway remained weak.

• Full-year 2024 net sales declined 7.4% to 2,488.7 MSEK, with negative organic growth of -8.0%, reflecting lower demand in both Sweden (especially H1) and Norway.

• Adjusted EBITA for Q4 was 45.4 MSEK (5.8% margin), and for the year 83.5 MSEK (3.4% margin), impacted by restructuring costs and a one-off IT disruption in Q1.

• Cash flow from operations improved significantly to 102.2 MSEK in Q4 and 185.6 MSEK for the year.

• Strategic milestones included a new three-year contract with Trafikverket in Sweden, a nationwide 24/7 service launch in Norway, and the creation of a new business area for electrical and energy solutions.

Financial highlights

• Q4 adjusted EBITA margin rose to 5.8% (5.6% last year); full-year margin fell to 3.4% (4.5%).

• EBITA for Q4 was 41.8 MSEK (5.3% margin); full-year EBITA was 66.2 MSEK (2.7% margin).

• EBITDA for Q4 was 65.3 MSEK (8.3% margin); full-year EBITDA was 161.2 MSEK (6.5% margin).

• Net result for Q4 was -4.9 MSEK (18.4 MSEK last year); full-year net result was -9.8 MSEK (131.9 MSEK last year).

• Earnings per share for 2024 were -0.26 SEK (4.18 SEK in 2023).

Outlook and guidance

• Management expects continued positive momentum in Sweden, with new contracts supporting sales and profitability in 2025.

• Norwegian market recovery is expected in late 2025, with gradual improvement in profitability over time.

• Long-term financial targets remain: revenue growth (including acquisitions) of at least 10% and EBITA margin of at least 7%; 2024 outcomes were -7.4% and 2.7%, respectively.

• No dividend proposed for 2024; focus remains on reinvestment and strengthening financial position.