Bravida (BRAV) Q3 2024 earnings summary

Executive summary

• Q3 net sales were SEK 6,575–6,583 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 restructuring 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 Denmark saw growth; order backlog remains high with healthy margins except in most regions outside Denmark.

• Nine acquisitions year-to-date added SEK 464–500 million in annual sales.

Financial highlights

• Net sales were SEK 6,575–6,583 million, with organic growth at -3%, M&A at +5%, and FX effects at -2%.

• EBITA was SEK 294 million (down 17% YoY), margin at 4.5% (4.8% adjusted for one-offs).

• Operating cash flow improved to SEK 193 million from -SEK 212 million last year; cash conversion at 134%.

• Net debt/EBITDA ratio at 1.2x; equity ratio 33.0%.

• Net income Q3: SEK 200 million (down from SEK 251 million YoY); EPS: SEK 0.96.

Outlook and guidance

• Market expected to remain challenging into early 2025, with improvement anticipated in late H1 or H2 2025.

• Margin target of 7% remains for 2026; 2025 will be a transformation year.

• Focus remains on margin over volume, cost control, and selective project intake.

• Service demand expected to remain stable; installation volumes to be negatively affected by weak construction markets.