AFRY (AFRY) Q2 2024 earnings summary

Executive summary

• Net sales rose 4.7% year-over-year in Q2 2024 to SEK 7,191 million, with adjusted organic growth at 2.2% and stable order stock at SEK 20 billion.

• EBITA increased to SEK 572 million (from 421 million), with a margin of 8.0% (6.1% last year), mainly driven by Infrastructure improvements.

• Profitability improved, supported by ongoing improvement programs in Infrastructure and capacity adjustments in Process Industries.

• Strong demand in energy, automotive, and life sciences; weak demand in pulp & paper, real estate, telecom, and IT consulting.

• Several significant project wins in energy and food-tech sectors, including assignments for Vattenfall, NRK, and cReal.

Financial highlights

• Q2 2024 net sales: SEK 7,191 million (6,869); EBITA: SEK 572 million (421); EBITA margin: 8.0% (6.1%).

• Adjusted organic growth at 2.2%; total growth 4.7% year-over-year.

• Cash flow from operating activities was SEK 420 million in Q2; available liquidity at SEK 3.8 billion.

• Net debt/EBITDA at 2.6; consolidated net debt (excl. IFRS 16) at SEK 5,504 million.

• Dividend of SEK 623 million paid in Q2; new SEK 800 million bond issued, SEK 800 million bank loan and SEK 149 million convertible repaid.

Outlook and guidance

• Focus on profitability improvements, especially in Infrastructure, and building on strong positions in energy and industry.

• Market outlook remains mixed: strong in energy and public infrastructure, weak in pulp & paper, real estate, telecom, and IT consulting.

• Expectation to deleverage further by year-end, with room for M&A if attractive targets arise.

• Ongoing improvement programme in Infrastructure expected to further enhance profitability.

• Emphasis on efficiency and flexibility to adapt to market changes.