C-RAD (CRAD) Q2 2024 earnings summary

Executive summary

• Achieved 43% year-over-year revenue growth in Q2 2024, marking the second-best revenue quarter ever, with EBIT margin rising to 14% and net earnings nearly doubling to 10.6 MSEK.

• Order intake increased 8% to 127.4 MSEK, and order backlog reached 734.0 MSEK, reflecting robust demand, especially in APAC and Americas.

• Focus remains on profitable growth, expanding installed base, and ongoing investments in organizational capacity and automation.

• Net earnings nearly doubled to 10.6 MSEK in Q2, with EPS at 0.31 SEK; H1 net earnings rose 207% to 26.7 MSEK.

Financial highlights

• Q2 revenue: 129.4 MSEK (+43% YoY); H1 revenue: 247.4 MSEK (+41% YoY).

• Q2 EBIT: 18.1 MSEK (margin 14.0%); H1 EBIT: 32.3 MSEK (margin 13.1%).

• Gross margin increased to 68% in Q2, mainly due to a higher share of proton orders, and is expected to normalize to around 65%.

• Cash flow from operating activities improved to -2.6 MSEK in Q2 (from -22.0 MSEK), with normalized cash flow at 8.8 MSEK after a one-time royalty payment of 13.5 MSEK.

• Cash position at period end: 142.4 MSEK (+72% YoY).

Outlook and guidance

• Continued focus on capturing opportunities in APAC, Americas, and emerging markets, with ongoing investments in automation and organizational growth.

• Gross margin expected to return to historical levels as the share of proton orders normalizes.

• Closely monitoring geopolitical instability and inflation for potential business impact.

• Headcount and operational investments will increase gradually, not as a short-term spike.