Ferronordic (FNM) Q4 2024 earnings summary

Executive summary

• Group revenue increased 43% year-over-year in Q4 2024 to SEK 1,312m, mainly from US expansion and strong performance.

• Operating profit reached SEK 2m (SEK 19m excluding SEK 17m inventory impairments in Germany and Kazakhstan).

• Net profit was SEK 9m, supported by positive foreign exchange effects.

• Net debt increased to SEK 1,978m after US acquisition and rental fleet expansion.

• No dividend recommended for 2024 due to negative full-year result and high leverage.

Financial highlights

• US revenue surged 134% to SEK 720m in Q4, with a 9% operating margin and strong cash generation.

• German revenue grew 1% to SEK 559m; operating loss reduced to SEK -41m, with new truck sales nearly doubling.

• Kazakhstan revenue declined 38% to SEK 33m; operating loss widened to SEK -10m, with SEK 4m inventory impairment.

• Group gross profit up 62% year-over-year; gross margin improved by 1.9pp to 16.5%.

• SG&A as a percentage of revenue improved to 15.6% from 21.5% year-over-year.

Outlook and guidance

• Optimism for US expansion, supported by infrastructure demand and large construction projects.

• German market remains weak, but cost reductions and focus on service/parts and e-mobility continue.

• Central Asia/Kazakhstan remains a small but opportunity-rich market, with focus on inventory reduction and margin improvement.