In This Article:
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Q4 Revenue: NOK 161 million with a 7.3% margin.
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Full Year Revenue 2024: Over NOK 647 million with a 7.4% margin.
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Year-over-Year Revenue Decline: 16.5% decrease.
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Defence and Aerospace Growth: 22% year-over-year and 6% quarter-over-quarter growth.
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Order Backlog: NOK 472 million at the end of Q4, increasing to NOK 505 million by January 2025.
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Underlying EBIT: NOK 54.1 million with an 8.4% EBIT margin, excluding one-time costs.
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Net Income Q4: NOK 4.9 million, down from NOK 12.3 million last year.
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Operating Cash Flow: 85% of the quarterly level, below last year's level.
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Dividend Proposal: NOK 0.35 per share.
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2025 Revenue Forecast: Between NOK 600 million and NOK 700 million, with expectations to exceed NOK 650 million.
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Book to Build Ratio Q4: 103.
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Employee Count: 2,411, down from 3,001 last year.
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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Kitron ASA (FRA:KP5) reported a strong performance in the defence and aerospace sector, with a 22% year-over-year growth and a 23% increase in order backlog.
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The company secured several new contracts, including a NOK 15 million maritime IoT deal and a USD 5 million US Army defence contract, expanding its footprint in the US.
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Kitron ASA (FRA:KP5) is investing in new facilities in Norway and Sweden to accommodate growing demand, indicating confidence in future growth.
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The underlying EBIT margin improved to 8.4% when excluding one-time costs, showcasing strong operational control.
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The order backlog reached NOK 505 million by January 2025, the highest level since mid-2023, driven by defence aerospace and electrification sectors.
Negative Points
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Overall revenue declined by 16.5% year-over-year, with significant drops in key sectors such as connectivity and electrification.
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The company faced a 34% decline in the CE market, primarily due to weakened electrification demand.
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Kitron ASA (FRA:KP5) incurred NOK 4.8 million in one-time restructuring costs in early 2024.
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The electrification sector showed a 32% decline year-over-year, with consumer-driven electrification remaining uncertain due to economic pressures.
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Operating cash flow was below last year's level, and net income decreased to NOK 4.9 million from NOK 12.3 million the previous year.
Q & A Highlights
Q: You're expecting a material step up in electrification in 2026. What is driving this growth? A: Peter Nilsson, CEO: We anticipate a return of segments like EV charging starting mid-year. This is expected to contribute significantly to the growth in electrification.