In This Article:
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Order Intake: Improved by 3% year-over-year, reaching EUR 1.509 billion.
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Revenue: Declined by 8% year-over-year.
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Profitability: Improved from 14.1% to 14.9%, despite the decline in sales.
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Cash Flow: Improved by more than EUR 100 million, with operative cash flow at EUR 323 million for the year.
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Return on Capital Employed (ROCE): 30.5% for Hiab.
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Gross Profit Margin: Improved by 2.2 percentage points.
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Net Debt: Would have been minus EUR 290 million if MacGregor sale had completed by year-end.
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Dividend Proposal: Total of EUR 2.77 per B share, conditional on MacGregor divestment.
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CapEx Investments: Approximately EUR 25 million planned for factory and customer support center investments.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cargotec Oyj (FRA:C1C1) reported strong full-year 2024 results with positive book-to-bill ratios and robust profitability and cash flow.
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Hiab achieved its best result ever, despite an 8% drop in the top line, showcasing strong operational efficiency.
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MacGregor had its best year since 2014, indicating a successful turnaround and strong performance in a challenging market.
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The company successfully completed the separation and listing of Kalmar, demonstrating effective execution of strategic initiatives.
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Hiab's order intake improved by 3%, driven by growth in the Americas and key account customers, contributing to a sequential increase in the order book.
Negative Points
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Cargotec Oyj (FRA:C1C1) experienced an 8% decline in revenues year-on-year, primarily due to a decrease in European sales.
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The demand environment remains challenging, with high financing costs and softness in the construction segment affecting order intake.
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The company incurred EUR15 million in non-repeating costs, impacting quarterly profitability, with significant restructuring expenses in Italy.
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MacGregor's divestment is expected to yield only EUR220 million in cash inflow, significantly lower than its enterprise value, due to balance sheet adjustments.
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The outlook for 2025 indicates a comparable operating profit margin above 12%, suggesting potential pressure on margins amid uncertain market conditions.
Q & A Highlights
Q: Can you explain the moving parts in the 2025 margin guidance, particularly regarding restructuring actions and potential one-off costs? A: Mikko Puolakka, CFO, explained that the 2025 margin guidance is based on the current order book and the EUR20 million cost efficiency program implemented last year, which is expected to yield positive results, especially in the second half of the year. The order book covers roughly five months of sales, and the company is prepared for both flat and potentially declining demand scenarios.