Infrea (INFREA) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased by 3.1% year-over-year to SEK 586.5m, with organic growth of 1.8% and acquired growth of 1.3%.

• EBITA for Q2 rose to SEK 17.5m (SEK 15.3m), and net income was SEK 9.6m (SEK 8.1m).

• The company completed a fully subscribed rights issue, raising SEK 83m before costs, strengthening the balance sheet.

• Order book increased significantly compared to the same period last year, supporting expectations for the coming quarters.

Financial highlights

• H1 2024 net sales grew 4.4% to SEK 905.6m, with EBITA at SEK -26.1m (SEK -30.0m).

• Rolling 12-month net sales reached SEK 2,052.5m, up 1.9% year-over-year.

• Q2 EBITDA margin was 6.7% (6.3%), and EBITA margin was 3.0% (2.7%).

• Cash flow from operations in Q2 was SEK -6.2m (SEK 8.3m); H1 cash flow improved to SEK -15.4m (SEK -31.8m).

• Net debt at period end was SEK 298.3m, with a net debt/EBITDA ratio of 2.8x.

Outlook and guidance

• Management sees gradual improvement and ongoing recovery from 2023, with a larger order book and positive trends in both results and cash flow.

• Focus remains on capital efficiency and project management, with continued review of the project portfolio throughout 2024.

• Market needs remain strong, and the company expects further improvement in the autumn.