Infracom (INFRA) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 reached 231.2 MSEK, up 5% year-over-year; full-year sales grew 16% to 838.0 MSEK.

• EBIT for Q4 was 19.8 MSEK (8.6% margin); full-year EBIT was 78.9 MSEK (9.4% margin), both below financial targets.

• Adjusted EBIT margin in Q4 improved to 11.3% (from 10.3%); full-year adjusted EBIT margin was 10.7%.

• EPS for Q4 was 0.45 SEK (0.26); full-year EPS was 2.93 SEK (1.90).

• Cash flow from operations was 16.6 MSEK in Q4 and 70.3 MSEK for the year, both lower than prior year.

Financial highlights

• Q4 net sales: 231.2 MSEK (219.6), +5% year-over-year; full-year: 838.0 MSEK (723.3), +16%.

• Q4 EBIT: 19.8 MSEK (16.4); EBIT margin: 8.6% (7.4%).

• Adjusted EBIT margin Q4: 11.3% (10.3%).

• Q4 pre-tax profit: 15.3 MSEK (14.6); full-year: 116.9 MSEK (84.4).

• Cash flow from operations Q4: 16.6 MSEK (24.8); full-year: 70.3 MSEK (101.6).

Outlook and guidance

• Management expects continued negative margin impact from investments in proprietary services, with upside expected as recurring revenues surpass sales costs in 24–36 months.

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

• Dividend proposal of 0.60 SEK per share for 2024, totaling 20.8 MSEK.