Per Aarsleff (PAAL) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months rose 6.3% year-over-year to DKK 16,244 million, exceeding expectations, with satisfactory earnings and strong order intake of DKK 17.3 billion.

• EBIT reached DKK 749 million (EBIT margin 4.6%), and cash flow from operating activities was DKK 1,757 million, aided by a DKK 565 million reduction in working capital.

• High activity in Denmark and Iceland, with major projects like Lynetteholm and Fehmarnbelt Fixed Link contributing to results.

Financial highlights

• Net income for the period was DKK 573 million, up from DKK 541 million year-over-year.

• Gross margin for the nine months was 11.6% (vs. 11.8% prior year); EBIT margin was 4.6% (vs. 4.8%).

• Earnings per share (EPS) reached DKK 29.35, up from DKK 27.69.

• Net interest-bearing debt decreased to DKK 848 million from DKK 1,517 million at the start of the period.

• Solvency ratio improved to 35.8% from 32.9% at the start of the year.

Outlook and guidance

• Full-year revenue growth now expected at 4–6% (DKK 21–21.4 billion), up from previous guidance of DKK 20.4–21.4 billion.

• EBIT guidance raised to DKK 1,000–1,050 million (previously DKK 950–1,050 million).

• Investments in property, plant, and equipment (excl. leases) expected at DKK 700–750 million.