Luotea (LUOTEA) Q4 2024 earnings summary

Executive summary

• Profitability improved in Circular Economy and Facility Services Finland despite a challenging market, while Facility Services Sweden faced headwinds from lost and unprofitable contracts.

• Board initiated plans for a potential demerger into two listed companies: Circular Economy and Facility Services.

• Sustainability metrics advanced, with notable reductions in carbon footprint and improved work safety.

• Net sales for 2024 were EUR 770.7 million, down 3.9% year-over-year; adjusted operating profit rose 14.1% to EUR 43.2 million, but operating profit fell due to significant impairments in Sweden.

• Board proposes a dividend of EUR 0.50 per share, about 46.8% of net cash flow from operating activities after investments.

Financial highlights

• Adjusted operating profit rose 14.1% to EUR 43.2 million in 2024; Q4 adjusted operating profit up 52.9% to EUR 10.5 million.

• Group net sales for 2024 were EUR 770.7 million, down 3.9% year-over-year; Q4 net sales fell 3.4% to EUR 194.2 million.

• Operating cash flow after investments totaled EUR 40.8 million, down from EUR 50.9 million in 2023.

• Capital expenditure decreased by almost 38% to EUR 37.5 million, with 95% allocated to Circular Economy businesses.

• Reported earnings per share was EUR -0.05, but adjusted EPS was EUR 0.78, up from EUR 0.77 in 2023.

Outlook and guidance

• Net sales and adjusted operating profit for 2025 expected to be at or above 2024 levels.

• Profitability improvement program targets at least EUR 8 million annual performance improvement by end of 2026.