Bravida (BRAV) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 6,575 million, flat year-over-year, with service sales up 8% and installation sales down 7%.

• EBITA margin declined to 4.5% from 5.4%, mainly due to operational challenges and SEK 19 million in restructuring costs in Denmark and southern Sweden.

• Strong operating cash flow of SEK 193 million, with cash conversion improving to 134%.

• Order intake declined 12% year-over-year, but order backlog remains high with healthy margins, except in Denmark where backlog increased.

• LTIFR improved by 17% year-over-year, and profit after tax was SEK 200 million, down from SEK 251 million.

Financial highlights

• Net sales for Jan–Sep 2024 rose 1% to SEK 21,545 million, with organic growth at -3% and acquisitions contributing 5%.

• EBITA for Jan–Sep 2024 fell 18% to SEK 930 million, with a margin of 4.3%.

• Basic and diluted EPS for Q3 were SEK 0.96 (down 21%), and SEK 3.10 for Jan–Sep (down 22%).

• Net debt/EBITDA improved to 1.2x, and cash conversion reached 134% (up from 57%).

• Equity/assets ratio was 33.0% at quarter-end.

Outlook and guidance

• Service demand remains stable, but installation volumes are pressured by a weak construction market, especially in southern Sweden and Finland.

• Management expects continued weak demand through the rest of 2024 and into H1 2025, with improvement anticipated in late H1 or H2 2025.

• Margin target of 7% remains for 2026; 2025 will be a transformation year with focus on margin over volume, cost control, and selective project intake.

• Attractive pipeline for acquisitions remains.