Alimak Group (ALIG) Q2 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDA/EBITA margin of 17.0%, progressing toward the 18% target despite mixed market conditions.

• Revenue grew 1% year-over-year to SEK/MSEK 1,806, with strong Industrial and Wind divisions offsetting Facade Access and Construction headwinds.

• Net result for the quarter increased 11% to SEK/MSEK 143; adjusted EPS was SEK 1.78, up from SEK 1.61.

• Transformation in Facade Access and rebound in Construction profit supported margin improvements.

• Continued investment in growth, digitalization, and operational efficiency despite challenging market conditions.

Financial highlights

• Adjusted EBITDA/EBITA rose to SEK/MSEK 307 from SEK/MSEK 295, margin at 17.0% vs. 16.5% last year.

• Gross margin reached 40.9%, up nearly 200 bps from Q2 2023.

• Operating cash flow was soft in Q2 due to temporary working capital increases, but improved for the half-year; expected to reverse by year-end.

• Cash flows for the first half grew 20% despite a soft Q2.

• Net income for Q2: SEK/MSEK 143 (+10.6%); basic EPS: SEK 1.35 (+11.6%).

Outlook and guidance

• Market rebound for Facade Access and Construction expected in 2025 as interest rates and inflation ease.

• On track to deliver financial and sustainability targets, with continued focus on margin improvement and profitable growth.

• Confident in ability to capitalize on improved market conditions when they emerge.