Arjo (ARJO) Q4 2024 earnings summary

Executive summary

• Q4 2024 closed with solid performance, showing sequential recovery from Q3 and strong momentum in rental and service businesses.

• Organic net sales growth for Q4 and full-year 2024 was 3.1%, with improved gross margin and underlying profitability.

• North America and UK were key growth drivers, with North America Q4 organic growth at 7.8%; recurring rental and service revenues provided stability.

• Profitability improved through product mix, supply chain efficiency, and pricing; strong financial position with improved leverage.

• Dividend of SEK 0.95 per share proposed.

Financial highlights

• Q4 adjusted EBITDA was SEK 653 million, up 6.5% year-over-year; full-year adjusted EBITDA was SEK 2,086 million.

• Gross margin for Q4 was 44.7%; full-year gross margin improved to 43.5% from 43.1% last year.

• Q4 cash conversion was 82.3%; full-year cash conversion was 76.7%.

• Net debt/adjusted EBITDA improved to 2.0; equity ratio increased to 51.2%.

• Dividend proposal of SEK 0.95 per share, record date May 2, 2025.

Outlook and guidance

• Organic net sales growth for 2025 expected within the 3–5% target interval.

• Plans for year-over-year gross margin improvement and ongoing efficiency programs.

• Larger order book entering 2025, especially in North America, supports positive outlook.