Lamor (LAMOR) Q4 2024 earnings summary

Executive summary

• Strong cash flow in Q4 and for the full year, driven by a EUR 28.9 million reduction in working capital, mainly from improved invoicing in the Kuwait project.

• Revenue and profitability improved sequentially from Q3, but full-year revenue declined 6.6% year-over-year due to lower revenue recognition from large service projects and one-time items impacting profitability.

• Order intake nearly doubled year-over-year to EUR 80.9 million, driven by strong equipment sales, new contracts, and increased sales efforts.

• Strategic focus on efficiency, safety, and profitable growth, with updated long-term targets, investments in plastic recycling, and a renewed management team.

Financial highlights

• Full-year 2024 revenue: EUR 114.4 million, down 6.6% year-over-year; adjusted EBIT: EUR 6.4 million, down 43.6% year-over-year.

• Net cash flow from operations: EUR 16.6 million for 2024 (vs. -12.7 million in 2023); Q4 cash flow EUR 32.2 million.

• Investments in 2024 totaled EUR 19.4 million, mainly for the Kilpilahti plastic recycling plant.

• Order backlog at year-end: EUR 88 million, with the majority for 2025.

• Q4 included EUR 6–7 million revenue recognition from the NEOM technology delivery.

Outlook and guidance

• Revenue and adjusted operating profit expected to increase in 2025 compared to 2024, with growth weighted to the second half.

• Revenue from large Kuwait service project expected to remain stable; plastic recycling revenue limited in 2025 as production ramps up.

• Long-term targets (by end 2027): revenue EUR 170 million, adjusted EBIT margin >14%, strong balance sheet, and dividend distribution aligned with business development.