Alimak Group (ALIG) Q3 2024 earnings summary

Executive summary

• Achieved all-time high adjusted EBITA margin of 17.8% in Q3 2024, progressing toward the >18% target, with all divisions contributing positively despite challenging construction markets.

• Revenue grew 1% year-over-year to SEK 1,742 million (4% at constant currency), driven by strong performance in Industrial and Wind divisions.

• Net result increased 10% to SEK 155 million; adjusted EPS was SEK 1.79, up from SEK 1.46.

• Strategic transformation under the New Heights program and operational efficiency initiatives supported performance.

• Strong balance sheet and cash conversion support ongoing investments and growth initiatives.

Financial highlights

• Adjusted EBITA rose to SEK 310 million (up from 279), with margin at 17.8% (16.1% last year), an all-time high.

• Order intake was SEK 1,592 million, down 5% year-over-year, mainly due to weakness in Construction and HSPS.

• Gross margin improved to 40.0% (from 38.8%); operating expenses rose to 22.4% of revenue.

• Cash flow from operations was SEK 265 million, down from SEK 390 million in Q3 2023, but improved sequentially from Q2.

• Net debt decreased by SEK 157 million; leverage at 2.12, down from 2.53 in Q3 2023.

Outlook and guidance

• Management expects construction market conditions to improve in 2025 as interest rates decline.

• Confident in ability to grow sales in 2025 despite a lower backlog, due to higher quality orders and market rebound.

• CapEx expected to normalize around 2% of revenue; continued focus on organic growth, product development, and selective M&A.

• The adjusted EBITA margin target remains above 18%, with continued progress toward this goal.

• Company remains on track to deliver on financial and sustainability targets.