Infranord (I) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 11% year-over-year to 1,476 MSEK, with operating profit rising to 98 MSEK and a margin of 6.6% driven by Swedish operations, while Norway saw weaker growth and profitability.

• Order intake for Q3 was 775 MSEK, up from 519 MSEK last year, but cumulative order intake for Jan–Sep fell to 4,302 MSEK from 4,985 MSEK; order backlog at period end was 7,926 MSEK.

• Major new contracts include the Inlandsbanan maintenance contract (372 MSEK) and continued responsibility for Lund's tramway, securing all competitive tramway maintenance contracts in Sweden.

• A new business strategy was adopted targeting above-market growth and improved profitability by 2027, focusing on efficiency, engagement, and sustainability.

Financial highlights

• Q3 2024 net sales: 1,476 MSEK (1,326 MSEK in Q3 2023); Jan–Sep: 3,855 MSEK (3,650 MSEK in 2023).

• Q3 operating profit: 98 MSEK (83 MSEK); margin 6.6% (6.3%). Jan–Sep operating profit: 46 MSEK (131 MSEK); margin 1.2% (3.6%).

• Q3 net income: 77 MSEK (61 MSEK); Jan–Sep: 28 MSEK (96 MSEK).

• Cash flow from operations for Q3: -126 MSEK (-93 MSEK); Jan–Sep: -89 MSEK (-254 MSEK), impacted by higher working capital.

• Return on equity (Jan–Sep, rolling 12 months): 6.7% (14.3%).

Outlook and guidance

• Swedish government’s infrastructure plan increases funding for rail maintenance, providing new opportunities, though still insufficient to address all deferred maintenance.

• Norwegian market remains stable with increased focus on reinvestment and maintenance, but new project funding is limited.

• Order backlog remains historically high, supporting future revenue.