Kreate Group (KREATE) Q4 2024 earnings summary

Executive summary

• Profitability improved in every quarter of 2024, with EBITA margin rising to 3.2% from 2.4% year-over-year, despite a 13.9% decrease in revenue to EUR 275.5 million.

• Order backlog at year-end was EUR 176.6 million, with EUR 119 million expected to be realized in 2025; backlog was down 10% year-over-year but up 15.3% from Q3.

• Swedish operations grew revenue by nearly 50% to EUR 32.9 million, with a strong outlook in the Swedish market.

• Dividend proposal of EUR 0.50 per share for 2024, to be paid in two instalments, up EUR 0.02 from the previous year.

• Dividend payout proposal represents 100% of annual net profit.

Financial highlights

• Full-year revenue was EUR 275.5 million, down from EUR 320.0 million year-over-year (-13.9%).

• EBITA for 2024 was EUR 8.8 million (3.2% margin), up from EUR 7.8 million (2.4% margin) in 2023.

• Free cash flow from operating activities was EUR 0.3 million for the year, down from EUR 26.1 million.

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

• Earnings per share (diluted) was EUR 0.49, up from EUR 0.44.

Outlook and guidance

• Revenue for 2025 is estimated at EUR 290–310 million, with EBITA expected to increase to EUR 9–11 million.

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

• Market outlook in Finland is neutral, strengthening in H2 2025; strong outlook in Sweden.

• 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, and increased infrastructure needs.