Kalmar (KALMAR) Q3 2024 earnings summary

Executive summary

• Achieved record-high Q3 2024 profitability with a 13.5% comparable operating profit margin, despite lower sales volumes and challenging market conditions.

• Services segment margin reached 18.3%, providing resilience and offsetting softness in equipment sales; services accounted for 33% of sales.

• Order intake reached EUR 416 million, up 6% year-over-year, with stable demand across most regions except North America.

• Completed demerger from Cargotec and began trading as an independent company on Nasdaq Helsinki in July 2024.

• Announced major orders in France, Australia, Brazil, and for hybrid/electric equipment, supporting a healthy sales pipeline.

Financial highlights

• Q3 2024 sales were EUR 425 million, down 16% year-over-year; comparable operating profit was EUR 57 million (13.5% margin, record high).

• Last 12 months (LTM) orders received totaled EUR 1.6 billion; LTM sales were EUR 1.79 billion.

• Return on capital employed (ROCE) in Q3 was 19.3%; cash conversion rate at 126%; leverage at 0.4x EBITDA.

• Gross profit margin at 26.2% for Q3 2024 LTM.

• Book-to-bill ratio close to one; order book provides visibility for 2–3 quarters.

Outlook and guidance

• 2024 comparable operating profit margin guidance raised to above 12%; no sequential improvement expected in Q4 versus Q3.

• Market expected to remain flat through 2024–2025, with order intake likely to stay around EUR 400 million per quarter.

• North American destocking to continue through year-end, with gradual recovery expected.

• 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%.