Aixia Group (AIXIA) Q3 2024 earnings summary

Executive summary

• Achieved record revenue of 312 MSEK for the first nine months, doubling previous full-year highs.

• Q3 EBITDA reached 2.4 MSEK, up 39% year-over-year, and 160% higher than full-year 2023.

• Earnings per share for Q3 rose to SEK 0.58, a 35% increase from Q3 2023.

• Strong liquidity with cash/bank balance at 16.6 MSEK, reflecting robust financial health.

• Significant orders secured in Q3 from telecom, hospitality, automotive, and energy sectors.

Financial highlights

• Q3 net sales: 40.2 MSEK (up from 35.2 MSEK in Q3 2023); nine-month net sales: 312.6 MSEK (up from 80.4 MSEK year-over-year).

• Q3 EBITDA: 2.4 MSEK (Q3 2023: 1.7 MSEK); Q3 EBIT: 1.2 MSEK (Q3 2023: 0.8 MSEK).

• Profit for Q3: 0.91 MSEK (Q3 2023: 0.68 MSEK); nine-month profit: 15.9 MSEK (vs. -2.3 MSEK year-over-year).

• Gross margin for ongoing operations increased quarter by quarter.

• Annual Recurring Revenue (ARR) up 14.8% year-over-year to 8.3 MSEK.

Outlook and guidance

• Long-term targets: revenue of 620 MSEK by 2026 and 987 MSEK by 2028, assuming 1-2 major deals per year.

• Market for AI solutions expected to grow at a CAGR of 26.9% through 2027, supporting growth ambitions.

• Positive business climate and rising demand for AI-driven solutions across all business areas.