AFRY (AFRY) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached SEK 27.2 billion, stable year-over-year, with improved profitability and a 7.8% EBITA margin.

• Strong energy sector performance offset weaker results in real estate, pulp and paper, and IT/telecom.

• Order backlog increased 4.2% year-over-year to SEK 20.1 billion, mainly driven by the energy division.

• Board proposed a dividend increase to SEK 6.00 per share for 2024, up from SEK 5.50.

• CEO transition: Linda Pålsson appointed as President and CEO in January 2025.

Financial highlights

• Q4 net sales: SEK 7,085 million, down 0.7% year-over-year; EBITA margin at 8.3%.

• Full-year EBITA (excl. items) was SEK 2,113 million (7.8% margin); earnings per share rose to SEK 10.85.

• Operating cash flow in Q4 was SEK 1,304 million, reducing net debt by SEK 1,153 million to SEK 4,557 million.

• Net debt/EBITDA improved to 2.1x, below the target of 2.5x.

• Adjusted organic growth for Q4: -0.2%, with positive pricing offset by negative volume.

Outlook and guidance

• Entering 2025 with improved financial strength, focus on streamlining operations, and strengthening core business.

• Calendar effects expected to negatively impact 2025 EBITA by 160 MSEK and reduce EBITDA margin by ~0.6 percentage points, especially in H1.

• Market in industrial sectors remains mixed; energy sector expected to stay strong; real estate and IT markets remain weak.

• Updated strategy to be presented in H2 2025, with ongoing operational measures throughout the year.