Harju Elekter (HAE1T) Q3 2024 earnings summary

Executive summary

• Q3 revenue fell 26.8% year-over-year to €41.2m, with nine-month revenue down 8.5% to €144.7m due to lower order volumes, especially in core markets.

• Cost-saving measures, including workforce reduction (841 employees vs. 956 last year), helped maintain profitability despite revenue decline.

• Order volumes began to recover at the end of Q3, but management expects at least two more challenging quarters ahead.

• Strategic plan for 2025–2030 is being finalized, with continued focus on growth and profitability opportunities.

Financial highlights

• Q3 gross profit was €6.1m (down 17.1% YoY), with a gross margin of 14.8% (up from 13.1%).

• Q3 EBIT was €2.7m (down 29.5% YoY); net profit was €1.7m (down 51.3% YoY); EPS was €0.09 (vs. €0.18).

• Nine-month EBIT rose 11.1% to €8.1m; net profit up 9% to €5.5m; EPS €0.30 (vs. €0.27).

• Operating expenses fell 26.5% in Q3, mainly from lower cost of sales and distribution costs.

• Cash flow from operations was €14.2m for nine months (vs. -€3.3m last year), driven by inventory reduction and improved profitability.

Outlook and guidance

• Order volumes increased at Q3-end, but revenue impact expected in spring/summer 2025.

• Management anticipates at least two more difficult quarters and will continue cost optimization.

• Strategic plan for 2025–2030 targets growth in business volumes and profitability.