Karnell Group (KARNEL) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales reached SEK 403 million, up 32% year-over-year, with 6.1% organic growth and strong EBITDA/EBITA growth of 42% to SEK 50 million, reflecting a margin of 12.5%.

• Full year 2024 net sales increased 27.1% to SEK 1,402 million, driven by organic growth and four strategic acquisitions, including a successful IPO.

• Operating cash flow for the year reached SEK 174 million, up from SEK 132.7 million, with Q4 cash flow at SEK 86 million.

• Maintained low leverage of 0.9x and increased outstanding shares to nearly 53 million post-IPO.

• The acquisition of Männistö, a profitable Finnish manufacturer, was completed in January 2025 and is expected to be accretive to EPS.

Financial highlights

• Q4 organic sales growth was 6.1%, with acquisitions contributing 25% and a minor positive currency effect.

• EBITDA/EBITA margin improved to 12.5% in Q4 from 11.6% last year; full-year EBITDA/EBITA rose 21% to SEK 166 million.

• Cash flow from operating activities increased 31% year-over-year in Q4.

• Q4 earnings per share after dilution: SEK 0.56 (up from 0.25); full-year EPS after dilution: SEK 1.49.

• Net debt at year-end was SEK 174 million (excluding IFRS leasing), with leverage at 0.9x.

Outlook and guidance

• Market outlook remains stable with low inflation and gradually decreasing interest rates, supporting investment confidence, especially in construction.

• Entering 2025 with a strong balance sheet, robust M&A pipeline, and expanded team.

• Early positive trends in product companies, but niche manufacturing faces continued margin pressure and softer demand.

• Q1 is seasonally the lowest quarter; performance varies across portfolio companies depending on customer exposure.

• No dividend proposed for 2024.