Metso (METSO) Q3 2024 earnings summary

Executive summary

• Market activity in Q3 2024 remained stable, with strong seasonality in aggregates and minerals, and large mining projects driving a 3% year-over-year increase in orders to €1,226 million, despite a 12% decline in sales to €1,160 million.

• Adjusted EBITA margin improved to 16.9% due to cost management and favorable sales mix, even as sales volumes declined.

• Sami Takaluoma was appointed as President and CEO, effective November 1, 2024.

• Three acquisitions were announced: Jindex, Diamond Z & Screen Machine, and Swiss Tower Mills, with two closed and one expected to close in early 2025.

• Discontinued operations posted a €250 million one-off charge from terminating the waste-to-energy business, significantly impacting net results and cash flow.

Financial highlights

• Orders received rose 3% year-over-year to €1,226 million; sales declined 12% to €1,160 million.

• Adjusted EBITA was €196 million (16.9% margin), down 8% year-over-year; operating profit was €178 million (15.3% margin); EPS from continuing operations was €0.15.

• Cash flow from operations was negative €19 million in Q3, mainly due to the €250 million waste-to-energy settlement.

• 9M 2024 sales were €3,591 million (-11% year-over-year); adjusted EBITA €601 million (16.7% margin); 9M EPS from continuing operations €0.46.

• Liquid funds at quarter-end were €467 million.

Outlook and guidance

• Market activity in both Minerals and Aggregates is expected to remain stable in the short term, with no significant improvement in Aggregates before 2025.

• Minerals proposal pipeline is strong, especially in copper, with gradual improvement expected.

• Aftermarket growth in minerals remains a target for the year.