Projektengagemang Sweden (PENG-B) Q3 2024 earnings summary

Executive summary

• Market remained subdued with cautious investment sentiment, especially in commercial and residential real estate sectors.

• EBITA margin improved to -4.6% in Q3 (from -12.0%) and to 4.8% for the nine months (from -0.2%), driven by efficiency measures and cost control.

• Net revenue declined 15.2% in Q3 and 11.9% for the nine months, mainly due to lower headcount and utilisation rates.

• Recruitment focused on areas with highest growth potential; new CEO appointed with focus on cost efficiency and sales.

• Profit for the nine months reached SEK 16.4m (from -13.1m), with EPS at SEK 0.68 (from -0.54).

Financial highlights

• Q3 net revenue: SEK 144.5m (170.4m); nine months: SEK 573.6m (651.2m).

• Q3 EBITA: SEK -6.6m (-20.5m); nine months: SEK 27.3m (-1.4m).

• Q3 EBITA margin: -4.6% (-12.0%); nine months: 4.8% (-0.2%).

• Q3 net income: SEK -6.9m (-20.2m); EPS: -0.29 (-0.84).

• Operating cash flow for Q3: SEK 4.9m (-3.3m); nine months: SEK 71.3m (53.8m).

Outlook and guidance

• Market expected to remain cautious, with delayed effects from interest rate cuts and weak property demand.

• Long-term demand for expertise remains, especially in energy, industry, defense, and urban development.

• Continued focus on cost efficiency, intensified sales, and profitable growth areas.

• Hourly rates have increased, but utilisation rates remain below last year.