In This Article:
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Revenue: SEK 1,742 million, up 1% (4% in constant currencies).
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Adjusted EBITA: SEK 310 million, up from SEK 279 million last year, margin of 17.8% vs. 16.1%.
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Order Intake: SEK 1,592 million, down 5% (2% at constant currencies).
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Facade Access EBITA Margin: 11.5%, up from 7.8% last year.
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Construction Order Intake: SEK 350 million, down 28% (27% at constant currency).
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Net Debt: Decreased by SEK 157 million, leverage at 2.12.
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EPS: SEK 1.46 million, up from SEK 1.32 million in Q3 last year.
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Operating Cash Flow: Strong performance, particularly in Facade Access, HSPS, and Industrial divisions.
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Gross Margin: Improved by 120 basis points compared to Q3 2023.
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Return on Capital Employed (ROC): 21.7% excluding goodwill, 9.1% including goodwill.
Release Date: October 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alimak Group AB (LTS:0R8W) delivered a solid performance in Q3 2024 with an adjusted EBITA margin of 17.8%, nearing their target of over 18%.
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The Facade Access division showed significant improvement with an EBITA margin increase to 11.5% from 7.8% last year.
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The company has a strong balance sheet and cash conversion, with leverage reduced to 2.12, aligning with their target of being below 2.5.
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Order intake in the Facade Access division increased by 20% and 25% in constant currency, supported by significant infrastructure projects.
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Alimak Group AB (LTS:0R8W) continues to focus on sustainability targets, including a CO2 reduction goal of 30% by 2025/19 and an ESG assessment for over 80% of suppliers.
Negative Points
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Order intake for the group was down 5% overall, with a 2% decrease at constant currencies, indicating challenges in some divisions.
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The construction division faced a challenging market with a 28% decrease in order intake, reflecting ongoing difficulties in the sector.
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The company's backlog is reportedly down between 5% and 10% compared to the end of Q3 last year, raising concerns about future sales growth.
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The construction market is expected to remain challenging for the next 2-3 quarters, potentially impacting future performance.
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Despite improvements, the wind division operates in a challenging market dependent on government regulations and larger OEMs, which could affect stability.
Q & A Highlights
Q: In the Facade Access division, are the margins in the backlog higher compared to Q3 and Q2, and what is the margin target for 2026? A: The order book is better today from a profitability perspective than before. We expect margins to be higher in 2025 and 2026, aiming to align with the group's target of more than 18%. However, whether we fully achieve this by 2026 remains to be seen, but we should be significantly closer than we are today. - OLE KRISTIAN JADAHL, President and CEO