Lifco (LIFCO) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached SEK 26,137 million, up 6.9% year-over-year, with Q4 sales growing 11% and 13 acquisitions contributing to growth; organic sales declined 0.5% due to weakness in Demolition & Tools.

• EBITA for 2024 was SEK 5,917 million, a 4.5% increase; Q4 EBITA rose 9.4%, with EBITDA up 9% and profit before tax up 12.5%.

• Net profit for 2024 was SEK 3,349 million, up 0.8%; earnings per share rose 1.0% to SEK 7.27.

• Dividend proposed at SEK 2.40 per share, a 14% increase year-over-year, representing 33% of net profit.

• Lifco continued its acquisition strategy, completing several deals across all segments in 2024.

Financial highlights

• EBITA margin for 2024 was 22.6%, down 0.6 points year-over-year; Q4 margin was 22.9%.

• Earnings per share for 2024 were 7.27 SEK, up 1.0% year-over-year; Q4 EPS rose 8%.

• Operating cash flow for 2024 was SEK 4,485 million, up 0.6%; free cash flow per share has grown at a 23.3% CAGR since 2014.

• Interest-bearing net debt/EBITDA at year-end was 1.2x; net debt/equity ratio was 0.6.

• Return on capital employed for 2024 was 20.9%, down from 22.6% in 2023.

Outlook and guidance

• No improvement or worsening seen in construction markets in Q4; outlook remains cautious.

• Lifco targets organic EBITA growth above GDP in relevant geographies, with acquisitions to supplement growth.

• Net debt/EBITDA is targeted in the 2-3x range; dividend payout policy is 30-50% of net profit.

• Financial position remains solid, with net debt well below the target of 3x EBITDA, supporting further acquisitions.

• Gradual inventory reduction targeted, but no dramatic changes expected.