Luotea (LUOTEA) Q3 2024 earnings summary

Executive summary

• Solid performance in circular economy businesses and Facility Services Finland, with all business lines improving year-on-year despite a challenging market environment and business cycle.

• Turnaround programs progressed well, with notable improvements in sustainability metrics, including significant reductions in carbon footprint and improved work safety.

• Cost adaptation and efficiency measures supported results, offsetting market challenges.

Financial highlights

• Net sales for Q3 2024 were EUR 192.3 million, down 4.3% year-on-year; January–September net sales totaled EUR 576.5 million, down 4.1%.

• Adjusted operating profit for January–September was EUR 32.7 million, up 2.7% year-on-year; Q3 adjusted operating profit was EUR 20.0 million.

• Earnings per share for January–September was EUR 0.51 (down from EUR 0.65), affected by one-off items and higher finance costs.

• Operating cash flow for January–September was EUR 44.1 million, down from EUR 58.5 million, impacted by a weak first quarter.

• Capital expenditure for January–September was EUR 29.7 million, down from EUR 46.0 million, mainly due to lower investments in environmental services.

Outlook and guidance

• 2024 net sales are expected to be at the same level as 2023, with adjusted operating profit at the same level or better.