Knowit (KNOW) Q2 2024 earnings summary

Executive summary

• Stabilization continued in Q2 2024, with improved adjusted EBITA and margin despite ongoing market challenges, driven by cost reductions and organizational changes.

• Early signs of recovery are visible, though Sweden remains the most challenging market, while Norway and Finland show more stability.

• The company remains focused on digitalization, innovation, and sustainability, with strong positions in the Nordic region and continued demand in defense, cybersecurity, and parts of the public sector.

Financial highlights

• Q2 2024 net sales were SEK 1,681.3 million, a 4.4% decrease year-over-year; adjusted EBITA for Q2 rose 22.6% to SEK 94.2 million, with a margin of 5.6% (up from 4.4%).

• Rolling 12-month adjusted EBITDA reached SEK 453 million, with revenues at SEK 6.8 billion and a margin of 6.6%.

• EBITA for January–June was SEK 202.1 million (down from SEK 273.8 million), with adjusted EBITA at SEK 230.5 million (down from SEK 274.9 million).

• Net income after tax for January–June was SEK 69.4 million (SEK 124.0 million), and EPS was SEK 2.34 (SEK 4.35).

• Restructuring costs were SEK 21 million, related to the dismissal of 70 employees.

Outlook and guidance

• No quick turnaround is expected in 2024; continued focus on efficiency and organizational optimization is planned.

• Some market improvement is seen in specific areas, but Sweden remains the most challenging market.

• Public sector demand in Sweden remains weak, with potential improvement anticipated in 2025.

• Strong demand persists in defense, cybersecurity, and parts of the public sector, especially in Norway.