Fasadgruppen Group (FG) Q4 2024 earnings summary

Executive summary

• Stable performance in Denmark, Norway, and Finland, but Sweden experienced a significant decline due to low new construction activity and tough competition.

• Clear Line acquisition in the UK contributed strong earnings and increased the order backlog, offsetting some Nordic weakness.

• 2024 marked by disappointing results, with a shift in focus to deleveraging, profitability improvements, and a new flatter organizational structure for efficiency.

• Largest acquisitions to date: Clear Line (UK) completed in Q4 2024 and Liab Plåtbyggarna (Sweden) in Q1 2025.

• Order backlog reached a record SEK 3,790.0 million, up 32.2% year-over-year, mainly from acquisitions.

Financial highlights

• Net sales for 2024 decreased by 3.6% year-over-year to SEK 4,926.8 million; Q4 net sales declined 1.6%, with organic sales down 15.6%.

• Adjusted EBITA margin dropped to 5.7% for the year and 6.4% in Q4, down from 8.8% and 9.1% respectively.

• Cash conversion was 118.5% for the year and 220% in Q4.

• Net debt to adjusted EBITDA pro forma at 3.3x (target: below 2.5x); not pro forma: 5.3x.

• No dividend proposed for 2024; dividend policy removed to prioritize deleveraging and growth.

Outlook and guidance

• 2025 will focus on strengthening profitability, deleveraging to net debt/EBITDA below 2.5x, and restrained acquisition activity.

• Long-term targets: SEK 10 billion in sales and at least 10% margin by 2028.

• Segment reporting to be introduced in Q1 2025 for greater granularity.

• Uplift in the Swedish market expected in the second half of 2025, but timing remains uncertain.