In This Article:
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Net Sales: SEK 13.7 billion for the full year; Q4 net sales down 6.8% to SEK 3.6 billion.
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Order Backlog: SEK 9 million, with a 6.7% organic growth in Q4.
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EBITA: SEK 944 million for the full year, with a margin of 6.9% compared to 7.6% in 2023.
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EBITA Margin (Q4): 5.4% compared to 8% last year; adjusted margin at 7.2%.
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Service Revenue: 35% of total revenue for the full year, up from 30% in previous years; 41% of Q4 sales.
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Cash Flow from Operations: SEK 471 million in Q4, with stable cash conversion at 89%.
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One-off Costs: SEK 94 million impacting EBIT in Q4, including SEK 65 million charged to EBITA.
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Organic Growth (Full Year): -6.5%, below the 10% target.
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Dividend Proposal: SEK 0.68 per share, maintaining last year's level.
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Leverage: 2.7 times EBITDA, slightly above target due to decreased earnings.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Instalco AB (LTS:0RP5) reported a strong cash flow from operations of SEK 471 million in Q4, showcasing effective working capital management.
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The company's service business grew over 10% in absolute numbers for the full year, with service sales reaching a record high of 41% in Q4.
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Instalco AB (LTS:0RP5) made a strategic move into the German market by signing a minority investment agreement with Fabri Group, aiming for majority ownership in the future.
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The company announced climate targets aiming for net zero emissions by 2045, with a medium-term goal to reduce greenhouse gas emissions by 50% by 2030.
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Instalco AB (LTS:0RP5) maintained a stable cash conversion rate of 89% despite challenging market conditions, reflecting strong operational efficiency.
Negative Points
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Net sales decreased by 6.8% to SEK 3.6 billion in Q4, with organic growth down by 7.4%, indicating a challenging market environment.
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The EBITA margin dropped to 5.4% in Q4 from 8% the previous year, impacted by one-off costs and market conditions.
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Instalco AB (LTS:0RP5) faced a challenging market in South Sweden, with overcapacity and a lack of large projects affecting performance.
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The company incurred one-off costs of SEK 94 million in Q4 due to restructuring efforts, including layoffs and subsidiary closures.
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Instalco AB (LTS:0RP5) reported a decrease in organic net sales for the full year by 6.5%, falling short of their 10% target.
Q & A Highlights
Q: Can you clarify the write-downs taken in the quarter and whether there are any further risks of write-downs in Q1? A: The SEK 65 million write-downs were due to closing down eight subsidiaries. Local companies have taken necessary reserves, and we don't foresee further risks requiring write-downs. However, there is still a risk with North [wall], which is under Chapter 11, but we aim to recover the SEK 60 million involved. - Robin Boheman, Chief Financial Officer, Head of Business Development