VBG Group (VBG) Q4 2024 earnings summary

Executive summary

• Achieved annual revenue of 5.579 billion SEK and EBITDA of 843 million SEK, with record cash flow from operating activities nearing 800 million SEK for the year and 294 million SEK in Q4.

• Earnings per share rose to 23.52 SEK, with a proposed dividend increase to 7.25 SEK, representing 30.8% of profit after tax.

• Despite a 12% year-over-year revenue decline in Q4, gross and EBITDA margins improved due to cost management, favorable product mix, and a property sale.

• Order intake grew in mid-single digits in Q4, with growth outside Europe and North America up 17%.

• Achieved second-best annual earnings despite challenging macroeconomic conditions, supported by geographic and product diversification.

Financial highlights

• EBITDA margin for Q4 reached 15.2%, in line with group objectives; adjusted EBITDA margin was 14.7% after one-offs.

• Net cash position after Q4, adjusted for pension and leasing, was 88 million SEK.

• Return on operating capital (ROOC) stood at 38.1%, with ROE at 14.5% and ROCE at 16.3%.

• Cash flow from operating activities reached SEK 796.4M, with record Q4 operating cash flow of SEK 294M.

• Interest-bearing net debt/EBITDA was 0.45, and equity/assets ratio was 63.3%.

Outlook and guidance

• Order intake momentum at the end of Q4 and into early 2025 is expected to positively impact Q2.

• Management anticipates continued market volatility and geopolitical risks but remains optimistic due to strong order intake and cash flow.

• Cost savings are expected to continue but will flatten out, with material cost reductions anticipated.

• Trailer market expected to gradually recover from Q2, with no sharp rebound.

• Focus remains on acquisitions, organic growth, and expanding into new geographic markets.