Beijer Alma (BEIA) Q3 2024 earnings summary

Executive summary

• Achieved modest organic growth in Q3 2024 despite a slowing European industrial economy, with stable performance in the Nordics, Asia, and UK, but continued weakness in Germany and Central Europe.

• Lesjöfors experienced mixed demand, with industrial growth in some regions but a slowdown in chassis springs; Beijer Tech saw stable demand and strong growth in fluid technology, supported by recent acquisitions.

• Completed acquisitions of Clifford Springs (UK), Clemco Norge (Norway), and Lacroix (France), supporting the growth strategy and diversification.

• Profit after net financial items rose 89% to MSEK 341, driven by a MSEK 187 reversal of additional purchase consideration for John Evans’ Sons.

• Earnings per share increased to SEK 5.02 from SEK 2.22 year-over-year.

Financial highlights

• Net revenue for Q3 2024 was MSEK 1,683, up 0.4% year-over-year, with organic growth of 1%.

• Order bookings declined by 1% to MSEK 1,650, but increased organically by 1%.

• Adjusted operating profit (EBIT) was MSEK 212, margin 12.6%, down from 13.4% last year.

• Adjusted EBITDA was SEK 230 million, SEK 50 million lower than last year, mainly due to higher depreciation from acquisitions.

• Cash flow from operating activities was MSEK 212, down from MSEK 343 last year.

Outlook and guidance

• No clear signs of improvement in weak markets like Germany and Central Europe; management refrains from speculating on timing of recovery.

• The Group continues to seek attractive acquisition targets while balancing with savings and organic growth, focusing on fluid technology and industrial segments.

• Activity in the M&A market remains decent, providing opportunities for future growth, though uncertainty persists.