DevPort (DEVP) Q4 2024 earnings summary

Executive summary

• Net sales decreased by 9.0% to 130.6 MSEK in Q4 2024 and by 4.0% to 528.1 MSEK for the full year compared to the previous year.

• Operating profit fell to 6.7 MSEK in Q4 (5.1% margin) and 34.0 MSEK for the year (6.4% margin), both down from 2023.

• Net income after tax was 5.6 MSEK in Q4 and 26.5 MSEK for the year, with EPS at 0.55 SEK (Q4) and 2.63 SEK (FY).

• The board proposes a dividend of 1.50 SEK per share, up from 1.25 SEK.

• The new CEO, Björn Arkenfall, took office in November 2024.

Financial highlights

• Q4 organic sales declined by 8.4%; full-year organic sales down 4.5%.

• Return on equity was 19.9% (down from 30.5%); return on capital employed at 22.3% (down from 35.3%).

• Equity ratio improved to 49.4% from 45.0% year-over-year.

• Cash and cash equivalents at year-end were 44.7 MSEK, with unused credit facilities of 50.0 MSEK.

• Operating cash flow for the year was 32.1 MSEK, down from 44.8 MSEK.

Outlook and guidance

• Management expects a gradual market recovery in 2025, with clearer growth in the second half.

• Effects of the rental law are expected to diminish, and strategic actions are anticipated to strengthen margins.

• Focus remains on diversification, project deliveries, and expanding into energy, manufacturing, and defense sectors.