Loihde (LOIHDE) Q4 2024 earnings summary

Executive summary

• Revenue grew 5% in 2024 to €139.7M, with adjusted EBITDA up 45% to €11.0M, driven by security and enterprise network services despite weak IT consulting markets.

• Security Solutions and Cyber, Cloud & Connect segments delivered strong growth, while Data & AI and Digital Services declined.

• A €9.9M goodwill impairment in IT consulting impacted reported profit; adjusted profit for the period was €2.7M.

• Board proposes a dividend of €0.75/share, with authorization for an additional €0.75/share.

• Change negotiations initiated in January 2025 to improve competitiveness and profitability.

Financial highlights

• Q4 2024 revenue: €39.8M (up 7% year-over-year); adjusted EBITDA: €3.9M (9.8% margin).

• FY 2024 adjusted EBITDA margin improved to 7.9% from 5.7% in 2023.

• Adjusted operating profit (EBIT) was €3.1M, up from €0.0M; reported EBIT was €-7.8M due to impairment.

• Annualized contract value for recurring services at year-end: €38.7M (up from €34.7M).

• Cash flow from operating activities rose to €8.0M from €1.9M.

Outlook and guidance

• 2025 revenue expected to be flat or slightly up from 2024; adjusted EBITDA forecast to improve from €11.0M.

• Strategic targets for 2027: €200M revenue and 15% adjusted EBITDA margin.