In This Article:
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Net Sales: SEK3.1 billion, a decline of 5% compared to the previous year.
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Order Backlog: SEK8.5 billion, decreased by 7.3% during the quarter.
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EBITDA: SEK188 million, with a margin of 6%.
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Cash Flow from Operations: SEK119 million, stable compared to the previous year.
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Service Revenue Growth: Increased by 17% to SEK1.1 billion, making up 34% of sales.
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Sweden Segment Net Sales: SEK2.7 billion, with organic growth down by 3%.
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Sweden Segment EBITDA: SEK119 million, with a margin of 5.5%.
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Rest of Nordic Segment Net Sales: SEK978 million, with organic growth down by 9%.
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Rest of Nordic Segment EBITDA: SEK68 million, with a margin of 6.9%.
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Cash Conversion: Stable at 87%.
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Leverage: 2.7 times, slightly above target due to lower earnings growth.
Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Instalco AB (FRA:4IIA) reported a strong cash flow from operations amounting to SEK907 million, indicating robust financial health.
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The company has a significant order backlog of SEK8.5 billion, providing a solid foundation for future revenue.
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Instalco's decentralized business model allows for adaptability to local market changes, which has been beneficial in the current challenging market conditions.
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The company's multidisciplinary approach, as demonstrated by successful collaborations among subsidiaries, is proving to be a winning concept.
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Instalco's service area grew by 17% year-over-year, making up 34% of sales in the quarter, which acts as a stabilizing factor in challenging times.
Negative Points
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Net sales declined by 5% in the quarter, reflecting a cautious approach to order taking due to market price pressures.
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The order backlog decreased by 7.3%, indicating a slowdown in new project acquisitions.
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EBITDA margin decreased to 6% from the previous year, impacted by a weaker market and less favorable project completions.
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The company experienced project write-downs, particularly in mid and southern Sweden, affecting profitability.
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Instalco's leverage increased to 2.7 times, slightly above their target, due to lower growth in earnings and a slowed acquisition pace.
Q & A Highlights
Q: Can you specify the size of the write-downs in the quarter and if similar amounts are expected in the coming quarters? A: There were no significant write-downs of specific dignity. The tougher environment means we are not able to get more than anticipated from finalized projects, especially from additional work. It's across the board, small amounts here and there, contributing to a lower margin this quarter. Robin Boheman, CEO