• Organic Growth: 3% currency-adjusted organic growth in Q3 2024.

• Gross Profit: Increased by 9% in Q3 2024.

• EBITDA: Improved by 52% to SEK200 million in Q3 2024.

• Earnings Per Share (EPS): Increased by 181% to SEK0.73 in Q3 2024.

• Rolling 12 Months EBITDA: Approximately SEK800 million.

• Rolling 12 Months EPS: SEK2.83, up from SEK2.09 in 2023.

• Net Sales by Geography: Sweden 27%, US 24%, UK 21%, Germany 11%, Other 17%.

• Recurring Revenue: 74% of total revenue.

• Design Management Division: Net sales increased by 5%, EBITDA increased to SEK118 million, EBITDA margin 10.6%.

• Life Cycle Management Division: Net sales decreased by 3%, EBITDA SEK39 million, EBITDA margin 8.3%.

• Process Management Division: Net sales increased by 3%, EBITDA SEK58 million, EBITDA margin 20.1%.

• Cash Flow from Operating Activities: Negative SEK6 million in Q3 2024; SEK426 million year-to-date September.

• Net Debt: SEK1.1 billion.

• Total Facility: SEK2.6 billion, with SEK1.1 billion unutilized as of September 30.

• Return on Equity: Increased from over 11% in 2020 to over 17% in Q3 2024.

• Warning! GuruFocus has detected 5 Warning Signs with FRA:AR7.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Addnode Group AB (FRA:AR7) reported a 52% improvement in EBITDA to SEK200 million, showcasing strong financial performance.

• Earnings per share increased significantly by 181% to SEK0.73, indicating enhanced profitability.

• The Design Management Division more than doubled its EBITDA due to organic growth and effective cost control.

• The company completed six acquisitions in 2024, expanding its growth opportunities and market presence.

• Recurring revenue forms a stable part of the business, now up to 74%, providing a reliable income stream.

Negative Points

• The economic situation remains uncertain, affecting customer investment decisions and potentially impacting future growth.

• The Life Cycle Management Division experienced a 3% decrease in net sales, with organic growth at minus 5% when adjusted for currency.

• The transition to a new transaction model impacted net sales, with an estimated 25% increase if the previous model had been maintained.

• The Process Management Division faced a tougher market with fewer tenders compared to last year, particularly in the public sector.

• The company is dependent on the automotive industry, especially in Germany, which poses a risk if the sector faces downturns.

Q & A Highlights

Q: Have you seen any early signs of Symmetry's competitive advantage in the US after the transaction model change? A: Johan Andersson, CEO: It's early, but we see signs that our investment in complementary software and services is providing a competitive edge. The new agent model requires competitiveness through services and software rather than price, and we believe this will increase our advantage over time.