Nederman (NMAN) Q3 2024 earnings summary

Executive summary

• High activity and strong order intake in three of four divisions, despite a challenging or slightly weaker market environment.

• Continued investments in operational efficiency, innovation, and new manufacturing/logistics sites in Helsingborg and Chesterfield, with a focus on structurally growing industries.

• Acquisition of Duroair Technologies in August 2024 expands solutions in defense and aeronautics sectors and strengthens position in North America.

• Orders received for Q3 2024 were SEK 1,437m, a currency neutral decline of 0.3% year-over-year; net sales were SEK 1,416m, down 6.8% currency neutral from Q3 2023.

• Adjusted EBITA for Q3 was SEK 160.8m (margin 11.4%), with net profit at SEK 70.4m and EPS of SEK 2.00.

Financial highlights

• Q3 orders received: SEK 1,437m, down from SEK 1,488m year-over-year, mainly due to currency effects and Process Technology division.

• Q3 sales: SEK 1,416m, down from SEK 1,574m year-over-year; currency neutral growth -6.8%.

• Adjusted EBITA/EBITDA margin Q3: 11.4% (up from 11.1%); profit after tax SEK 70m, EPS SEK 2.00.

• Strong cash flow from operations in Q3: SEK 181m (up from SEK 137m); year-to-date SEK 351m.

• Net debt increased due to new IFRS 16 leases and acquisitions; net debt excluding IFRS 16 reduced.

Outlook and guidance

• Demand is slightly slower, but digital offerings, large order backlog, and focus on structurally growing industries support a cautiously positive outlook.

• Risks from interest rates, economic slowdown, and geopolitical uncertainty may impact customer investments.

• Long-term growth potential remains strong due to sustainability trends, regulatory drivers, and increasing awareness of air quality.