In This Article:
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Net Sales: SEK30.7 billion for the full year, with a 5% organic growth rate and 3% from acquisitions.
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EBITA: Exceeded SEK3 billion for the full year, with a 20% increase or more than SEK0.5 billion.
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EBITA Margin: 10% for the full year; Q4 margin increased to 11.1%.
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Q4 Net Sales: SEK8.1 billion, with 4% organic growth and 1% from M&A.
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Q4 EBITA: SEK901 million, a 44% increase or SEK288 million up, adjusted for calendar effects.
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Leverage: Reduced to 0.4 times, significantly down from last year.
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Operating Cash Flow: Improved from SEK2.5 billion to SEK4.1 billion for the full year.
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Dividend Proposal: SEK3.30 per share, a 12% growth with a 57% payout ratio.
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Net Debt: SEK1.5 billion, significantly reduced versus Q4 last year.
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Available Liquid Assets: SEK5.3 billion at the end of the year.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sweco AB (FRA:7W71) achieved a milestone with net sales surpassing SEK30 billion and EBITA exceeding SEK3 billion, marking a successful year.
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The company reported a full-year double-digit EBITA margin for the first time in over a decade, demonstrating strong financial performance.
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Sweco AB (FRA:7W71) experienced solid organic growth of 5% and an additional 3% from acquisitions, indicating robust business expansion.
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The company improved its EBITA by more than 20%, with all business areas showing EBITA improvements.
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Sweco AB (FRA:7W71) maintained a strong financial position with a significant reduction in leverage to 0.4 times and improved operating cash flow from SEK2.5 billion to SEK4.1 billion.
Negative Points
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The Residential and Commercial Real Estate segments showed weak demand, impacting overall market performance.
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Finland and Belgium experienced negative growth, with the Finnish market remaining challenging.
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Personnel expenses increased, which had a negative impact on the EBITA margin.
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The company faced a negative calendar effect, resulting in a SEK41 million impact on net sales and EBITA.
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Despite a strong financial position, the dividend payout ratio decreased slightly compared to the previous year, indicating cautious financial management.
Q & A Highlights
Q: Can you provide insights into the demand across different segments and whether the order backlog reflects market share gains or improvements in weaker segments like Residential and Commercial Real Estate? A: The demand remains strong in Energy, Infrastructure, Water, Environmental services, and parts of Industry and Defense. However, Residential and Commercial Real Estate continue to be weak. The strengthening order backlog is primarily due to Sweco gaining market share.