Alligo (ALLIGO) Q4 2024 earnings summary

Executive summary

• 2024 was a challenging year with weak market conditions, especially in construction and manufacturing, but oil and gas in Norway remained stable.

• Revenue for Q4 2024 increased by 2.0% to MSEK 2,589, driven by acquisitions, while organic growth was -3.0%; full-year revenue was flat at MSEK 9,333, with organic growth at -3.9%.

• Adjusted EBITA for Q4 was MSEK 214 (8.3% margin), down 30.5% year-over-year, and for the full year MSEK 601 (6.4% margin), reflecting lower volumes and margin pressure from customer mix.

• Eleven acquisitions were completed in 2024, including Corema and, after year-end, Svenska Batterilagret, strengthening technology and specialty segments.

• The company has strengthened its platform with a new central warehouse in Norway, a unified ERP system, and maintains a strong financial position for continued investment and dividends.

Financial highlights

• Q4 2024 revenue: MSEK 2,589 (+2.0% YoY); full-year: MSEK 9,333 (flat YoY); organic growth Q4: -3.0%, full-year: -3.9%.

• Adjusted EBITA Q4: MSEK 214 (8.3% margin, -30.5% YoY); full-year: MSEK 601 (6.4% margin, -27.3% YoY).

• Gross margin Q4: 41.1% (down from 43.4% YoY); full-year: 40.7% (down from 41.4%).

• Operating cash flow Q4: MSEK 438 (down from 526 YoY); full-year: MSEK 952.

• Net operational liabilities/EBITDA (excl. IFRS 16): 2.4x at year-end; available cash and credit facilities totaled MSEK 1,490.

Outlook and guidance

• Management expects market stabilization and potential recovery in the second half of 2025, with small construction customers likely to lead the rebound.

• Growth opportunities are expected in technology areas and through further acquisitions.

• GDP growth is anticipated in all three core countries in 2025 and 2026.

• Continued cost control, operational streamlining, and new service launches are planned for 2025.

• The company maintains a strong financial position, enabling continued investment and dividend payments.