HEXPOL (HPOL) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were 4,977 MSEK, down 9% year-over-year, mainly due to lower automotive demand and negative FX effects; EBIT was 800 MSEK with a 16.1% margin.

• Cash flow remained strong at 803 MSEK, and the balance sheet supports further M&A.

• Sustainability initiatives, especially in recycled products, advanced with high interest in automotive and readiness for new EU regulations.

• Building and construction demand increased, while non-automotive sectors remained stable.

• Focus remains on cost control, efficiency, and organic growth opportunities.

Financial highlights

• EBITA for Q3 was 834 MSEK (16.8% margin), down from 964 MSEK last year; EBIT for Q3 was 800 MSEK (16.1% margin).

• Earnings per share for Q3 were 1.62 SEK; for January–September, 5.42 SEK.

• Operating cash flow in Q3 was 803 MSEK; for the nine months, 1,841 MSEK.

• Negative currency effects impacted sales by 170–172 MSEK in Q3.

• Net debt/EBITDA stood at 0.62; equity/assets ratio at 64%.

Outlook and guidance

• Management expects continued uncertainty, especially in automotive, but sees growth opportunities through M&A, organic initiatives, and efficiency improvements.

• Pricing is stable quarter-on-quarter but down year-over-year; no significant changes expected in Q4.

• Sustainability and increased use of recycled materials remain strategic priorities.