Wall to Wall Group (WTW-A) Q4 2024 earnings summary

Executive summary

• Net sales declined by 10.2% year-over-year in Q4 2024, mainly due to market caution in relining and energy, while flushing remained strong.

• Q4 2024 net revenue was SEK 238.6m, down from SEK 282.6m in Q4 2023; full-year revenue was SEK 918.5m, down from SEK 956.1m.

• Adjusted EBITDA for Q4 2024 was SEK 27.6m (margin 11.6%), and for the year SEK 97.2m (margin 10.6%).

• Adjusted EBITA for Q4 2024 was SEK 12.6m (margin 5.3%), and for the year SEK 36.7m (margin 4.0%).

• Board proposes a cash dividend of SEK 1 per share.

Financial highlights

• Q4 sales declined by 10.2% on a comparable and currency-adjusted basis, mainly due to lower activity in pipe relining and energy.

• Flushing operations showed stable demand and positive development.

• Cash flow from operations was SEK 65.9m in Q4 and SEK 102.0m for the year.

• Net debt increased to SEK 186.6m from SEK 137.8m year-over-year.

• Gross margin improved to 34.7% for the year, up from 34.5% in 2023.

Outlook and guidance

• Earnings (adjusted EBITA) expected to recover significantly in 2025, driven by market rebound, cost reductions, and efficiency gains.

• Property owners anticipated to increase long-term maintenance spending, boosting relining demand from 2025.

• Regulatory changes and efficiency requirements expected to fuel growth in energy solutions.

• Further cost reductions planned, targeting indirect costs at 20% of net sales (from 23.9% in 2024).

• Long-term targets: organic growth >10% and adjusted EBITA margin of 15%.