Kalmar (KALMAR) Q2 2024 earnings summary

Executive summary

• Successfully completed the demerger from Cargotec and listed on Nasdaq Helsinki on 1 July 2024, marking a strategic milestone as an independent company.

• Achieved solid profitability in Q2 2024, supported by commercial performance, cost efficiency, and a comparable operating profit margin of 12.6%.

• Eco portfolio accounted for 40% of total sales, reflecting a strong commitment to sustainable innovation.

• Orders received declined 14% year-over-year in Q2, with sales down 25%, reflecting softer demand and a lower order book.

• Launched the Driving Excellence initiative targeting €50 million in gross efficiency improvements by 2026.

Financial highlights

• Q2 2024 sales totaled €417 million, down 25% year-over-year; orders received were €375 million (-14%), and order book at period end was €925 million.

• Comparable operating profit was €52.3 million (12.6% margin), with profit for the period at €31.2 million and EPS of €0.49.

• LTM sales reached €1.868 billion; gross profit margin at 25.5%; cash conversion at 148%.

• Leverage (net debt/EBITDA) at 0.6x, gearing at 27.3%, and return on capital employed (ROCE) at 20.2%.

• Cash flow from operations before finance items and taxes improved to €11.3 million in Q2 and €113 million in H1.

Outlook and guidance

• 2024 outlook unchanged: comparable operating profit margin as a standalone company estimated to be above 11%.

• Long-term targets for 2028: 5% annual sales growth, 15% comparable operating profit margin, ROCE above 25%, leverage under 2x, and dividend payout ratio of 30-50%.