Bravida (BRAV) Q2 2024 earnings summary

Executive summary

• Net sales increased by 5% year-over-year in Q2 2024 to SEK 7,694 million, with 8% growth in service sales and 1% organic growth, supported by acquisitions.

• EBITA/EBITDA margin declined to 4.5% from 5.6% due to operational challenges in Denmark and a weak market in southern Sweden.

• Order backlog reached a record SEK 17.6 billion, with strong intake in Sweden and Norway.

• Operating cash flow improved to SEK 548 million, with cash conversion at 112%.

• Eight acquisitions completed in 2024, adding up to SEK 437 million in annual sales, with continued focus on service and strategic tech.

Financial highlights

• Q2 2024 net sales: SEK 7,694 million (+5% YoY); EBITA: SEK 343 million (4.5% margin, down from 5.6%).

• Service sales grew 8%, installation sales grew 3%.

• Net debt/EBITDA at 1.1x, with net debt of SEK 2.5 million.

• Dividend payout exceeded 50% of net profit; SEK 3.50 per share approved at AGM.

• LTIFR improved by 19% year-over-year; ESG KPIs showed lower injury rates and reduced CO₂ emissions.

Outlook and guidance

• Stable demand for service activities expected, while installation market remains challenging, especially in southern Sweden and Finland.

• Margin recovery anticipated in Denmark and southern Sweden by Q4 2024.

• Continued focus on cost control, selective project intake, and margin over volume; strong pipeline for acquisitions.

• Favorable conditions in infrastructure, industry, and civil engineering projects.