Wall to Wall Group (WTW-A) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 5.3% year-over-year to SEK 206.0 million, with adjusted EBITA dropping to SEK 5.6 million (2.7% margin), mainly due to weaker performance in Relining and Energy segments.

• Net earnings for Q3 rose to SEK 20.7 million from SEK 4.4 million year-over-year, with EPS increasing to SEK 1.52 from SEK 0.32, driven by positive revaluations and cost controls.

• The group maintained a disciplined M&A strategy, focusing on high-performing companies, though no acquisitions were completed in Q3.

• André Strömgren was appointed CEO in October 2024, succeeding Joachim Welin, and will retain CFO duties until a successor is named.

• Pipe flushing services continued strong performance, while relining and energy operations experienced weak demand, especially outside Sweden and Norway.

Financial highlights

• Net sales for Q3 2024 were SEK 206.0 million, down from SEK 217.4 million in Q3 2023, with a like-for-like decline of 13.6%.

• Adjusted EBITA margin decreased to 2.7% from 5.1% year-over-year; adjusted EBITDA margin was 10.4% (11.6% prior year).

• Rolling 12-month net sales reached SEK 972.1 million, with an adjusted EBITA of SEK 38.2 million and margin of 3.9%.

• Net debt including leasing stood at SEK 195.2 million, while net debt/adjusted EBITDA R12 was 2.3x.

• Cash flow from operating activities for the nine months was SEK 36.1 million, up from SEK 2.5 million year-over-year.

Outlook and guidance

• Management expects a gradual improvement in profitability for the second half of the year, supported by a robust order book.

• Improved market conditions in Q3 with increased inquiry activity and stronger sales, positively impacting the order book.

• Normalized demand for relining and energy expected to have some impact in late 2024 and full impact from 2025.