Kreate Group (KREATE) Q4 2024 earnings summary

Executive summary

• Profitability improved in 2024, with EBITA margin rising to 3.2% from 2.4% year-over-year, despite a 13.9–14% revenue decline to EUR 275.5 million.

• Swedish operations grew revenue by 45.5–50%, contributing strongly to overall results and expanding into new segments.

• Order backlog at year-end was EUR 176.6–177 million, up 15.3% from Q3, with major new projects like the Koskela tram depot.

• Dividend proposal of EUR 0.50 per share for 2024, to be paid in two instalments, representing a 100% payout and 7% yield.

• Employee and customer satisfaction remained high, with NPS scores of 49 and 82, and personnel increased to 511.

Financial highlights

• Full-year revenue was EUR 275.5 million, down 13.9–14% year-over-year; Q4 revenue was EUR 75.5 million, down 5.9–6%.

• EBITA for 2024 was EUR 8.8 million (3.2% margin), up from EUR 7.8 million (2.4% margin); Q4 EBITA margin was 3.7%.

• Net income for 2024 was EUR 4.6 million, up from EUR 3.9 million in 2023.

• Free cash flow from operating activities was EUR 0.3 million, down from EUR 26.1 million in 2023, due to a EUR 14 million negative change in net working capital.

• Net debt increased to EUR 29.9–30 million, with net debt/EBITDA at 2.0.

Outlook and guidance

• Revenue for 2025 is guided to grow to EUR 290–310 million, with EBITA expected to rise to EUR 9–11 million.

• Guidance is based on the current order backlog and anticipated project transfers from development to implementation.

• Dividend proposal represents 100% of annual net profit, to be paid in two instalments.

• Revenue and profit formation in 2025 expected to focus on the second half of the year.

• Long-term market outlook is positive, supported by urbanization, green transition investments, and increased infrastructure needs.