NOTE (NOTE) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales were SEK 1,025 million, down 5% year-over-year, with full-year sales at SEK 3,901 million, down 8% from 2023; organic growth was -10% due to sector slowdown and inventory adjustments.

• Operating profit margin for Q4 was 9.5%, slightly below last year, but underlying operating profit and margin improved, reaching the second-best level ever.

• Inventory levels were significantly reduced by over SEK 300 million (30% year-over-year), and delivery performance exceeded 95% on-time.

• Order backlog and order stock decreased by 2%, reflecting cautious market sentiment and more conservative customer behavior.

• Positive cash flow over SEK 500 million for the year, resulting in a strong cash position and balance sheet.

Financial highlights

• Q4 operating profit was SEK 98 million, down 16% year-over-year; full-year operating profit was SEK 352 million, down 18%.

• Q4 adjusted operating margin was 10.5% (Q4 2023: 8.5%), and full-year adjusted margin was 9.3% (2023: 9.4%).

• Cash flow from operations and capex for the year was SEK 539 million, up from SEK 289 million in 2023.

• Equity ratio reached 51%, the highest in recent history.

• Net debt at year-end was SEK 87 million, down from SEK 421 million, with cash and unused credit totaling SEK 623 million.

Outlook and guidance

• Q1 2025 sales expected to be similar to Q4 2024, with full-year 2025 guidance of SEK 3.9–4.3 billion in sales and 9.5–10.5% operating margin.

• Management expresses cautious optimism for 2025, with steeper growth expected in the second half and regionalisation/electrification as growth drivers.

• Strong cash flow expected to continue in the first half of the year due to ongoing inventory reductions.