Drillcon (DRIL) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were 112 MSEK, down 4% year-over-year; full-year sales reached 416 MSEK, the second highest in company history.

• EBIT margin for Q4 was 14%, with adjusted full-year EBIT margin at 8.2%, up from 7.2% last year.

• Net income for Q4 was 11.6 MSEK (up from 9.5 MSEK); full-year net income was 20.2 MSEK (down from 21.0 MSEK).

• Strong operational performance in Scandinavia offset by production disruptions in Iberia; Americas operations discontinued mid-year.

• Board proposes a dividend of 0.25 SEK per share, totaling 11.1 MSEK.

Financial highlights

• Q4 EBITDA: 22.8 MSEK (24.0 MSEK last year); full-year EBITDA: 56.8 MSEK (64.2 MSEK last year).

• Q4 EBIT: 15.7 MSEK (16.5 MSEK); full-year EBIT: 27.0 MSEK (34.6 MSEK).

• Adjusted full-year EBIT: 34.0 MSEK (34.6 MSEK), excluding one-time costs for Chile exit and legal proceedings.

• Q4 cash flow from operations: 24.0 MSEK (49.7 MSEK); full-year: 43.1 MSEK (73.4 MSEK).

• EPS Q4: 0.26 SEK (0.21 SEK); full-year: 0.45 SEK (0.47 SEK).

Outlook and guidance

• Order book remains strong at approximately 870 MSEK.

• Customer demand and investment appetite remain stable, especially in Scandinavia.

• Digital transformation and process improvements expected to further enhance efficiency and reduce capital tied up.

• Ongoing focus on expanding raiseboring in Scandinavia and strengthening exploration in Iberia.