Infracom (INFRA) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 202.7m, down 1% year-over-year; EBIT was SEK 14.6m, with a margin of 7.2% compared to 12.2% last year.

• H1 2024 net sales grew 29% year-over-year to SEK 402.0m; EBIT for H1 was SEK 48.7m, margin 9.6% (down from 15.1%).

• Result before tax in Q2 was SEK 40.2m (up from SEK 23.8m); EPS for Q2 was SEK 0.98 (SEK 0.54 last year).

• Cost reduction program initiated, including staff reductions and office closures, targeting SEK 2m/month in savings.

• Two acquisitions completed in Q2: QSi Sweden AB and Centiljon IT-Consulting AB.

Financial highlights

• Q2 cash flow from operations was SEK 4.5m (SEK 47.8m last year); H1 cash flow SEK 28.9m (SEK 74.0m last year).

• Net debt/EBITDA at 1.59x (0.80x last year); liquidity at period end SEK 13.4m (SEK 59.0m last year).

• Investments in tangible assets were SEK 3.0m in Q2 and SEK 4.2m in H1.

• Dividend of SEK 0.55 per share (SEK 19.0m total) paid in Q2.

Outlook and guidance

• Financial targets: annual sales growth of 15–20%, EBIT margin of 15% ±2%, net debt/EBITDA below 2.5x.

• Profitability prioritized over growth; growth to be achieved via acquisitions and organic expansion.