AFRY (AFRY) Q3 2024 earnings summary

Executive summary

• Profitability improved in Q3 2024, with EBITA rising to SEK 365 million and margin to 6.1%, driven by Infrastructure and Energy, despite flat sales and weak Process Industries.

• Order stock remained stable at SEK 20 billion, though Process Industries saw a year-over-year decline.

• Major project wins included partnerships for SSAB's fossil-free steel, a pumped hydro project in Australia, and clean energy transmission in Germany.

• CEO transition announced, with Jonas Gustavsson to step down by March 2025; succession process underway.

• Improvement programs in Infrastructure and capacity adjustments in Process Industries continued as planned.

Financial highlights

• Q3 2024 net sales were SEK 5,993 million, down 1.1% year-over-year; EBITA margin improved to 6.1% from 5.4%.

• Rolling twelve-month net sales at SEK 27 billion, with EBITDA above SEK 2.1 billion, up SEK 100 million year-over-year.

• Adjusted organic growth was 0.1%, supported by positive pricing, but negative volume in several divisions.

• Operative cash flow was SEK 108 million in Q3 2024, down from SEK 420 million in Q2 2024.

• No items affecting comparability or material project write-downs in the quarter.

Outlook and guidance

• Focus remains on scaling in strong segments like Energy and improving Infrastructure margins.

• Process Industry expected to remain challenging, with efforts to shift towards operational services and new segments.

• Continued emphasis on efficiency and flexibility to adapt to mixed market conditions.

• Expectation to deleverage during the remainder of the year, barring M&A activity.

• Well-positioned for global energy and industrial transition.