OXE Marine (OXE) Q3 2024 earnings summary

Executive summary

• Gross margin improved to 40% in Q3 2024, the highest reported for the quarter, with operating expenses kept under control and EBITDA at its best level in company history, though still negative at SEK -5.7m compared to SEK -10.2m last year.

• Net turnover for Q3 2024 was SEK 45.6m, down 4% year-over-year, with propulsion sales declining 15% and parts & accessories sales growing 31%.

• The company secured significant new orders from US customers, including a USD 5.9m order from a boat builder and a USD 1.5m order from a US government agency.

• Management focused on refinancing and recapitalization, including a conditional rights issue of approx. SEK 78m and full restructuring of SEK 243m in debt, aiming to remove all interest-bearing debt.

Financial highlights

• Q3 2024 net turnover: SEK 45.6m (SEK 47.5m in Q3 2023); gross profit: SEK 18.1m (SEK 17.0m); gross margin: 40% (36%).

• Q3 2024 EBITDA: SEK -5.7m (SEK -10.2m); net loss: SEK -14.8m (SEK -17.6m); EPS: SEK -0.04 (SEK -0.06).

• Jan–Sep 2024 net turnover: SEK 130.2m (SEK 126.6m); gross profit: SEK 42.6m (SEK 25.3m); gross margin: 33% (20%).

• Jan–Sep 2024 EBITDA: SEK -36.4m (SEK -55.4m); net loss: SEK -68.7m (SEK -89.0m); EPS: SEK -0.21 (SEK -0.29).

• Cash on hand at quarter end: SEK 6.1m (SEK 22.2m in Q3 2023); total assets: SEK 277.2m (SEK 339.3m at 2023 year-end).

Outlook and guidance

• Management expects increased deliveries in coming quarters due to ramp-up in production and fulfillment of large US orders.

• Recapitalization and debt restructuring are underway, with bondholder approval received for a debt-to-equity swap post-quarter.