Prevas (PREV) Q3 2024 earnings summary

Executive summary

• Revenue grew 13% in Q3 to 351.9 MSEK, mainly from acquisitions and price increases, while organic growth slightly declined.

• EBITDA/EBITA margin dropped to 7.5% due to lower utilization and challenges in Finland.

• Profit for the period fell 60% to 9.1 MSEK; EPS after dilution was 0.75 SEK, down 56.6%.

• Integration of Enmac (Finland) and acquisition of Design-People (Denmark) expanded the Nordic presence and service offering.

• Actions to mitigate margin pressure include staff reductions and increased sales focus, especially in Finland and Sweden.

Financial highlights

• Q3 EBITDA/EBITA was 26.5 MSEK, down from 31.8 MSEK year-over-year; EBIT for the quarter was 17.9 MSEK, impacted by one-time acquisition costs.

• Operating cash flow was -7 MSEK, down from 50 MSEK last year, affected by calendar effects and lower results.

• Net debt/EBITDA at 0.99; equity ratio at 48.3%, both indicating a strong balance sheet.

• Cash flow from investment activities was -189 MSEK, reflecting acquisition activity.

• Q1-3 2024 net turnover: 1,154.6 MSEK (up 6.6% year-over-year); EBITA: 116.3 MSEK (down from 127.2 MSEK).

Outlook and guidance

• Focus remains on profitable growth and improving EBITDA margin, with positive leverage expected if utilization normalizes.

• Positive trends in Finland in September with a return to positive EBITA.

• Market synergies from recent acquisitions and strong quotation backlog expected to drive future growth.

• No formal forecast provided, but leadership is optimistic about future performance.

• Demand remains high in energy, electrification, sustainability, defense, embedded systems, and cybersecurity.