Projektengagemang Sweden (PENG-B) Q4 2024 earnings summary

Executive summary

• EBITA for 2024 rose to SEK 30 million from SEK 4.6 million year-over-year, despite a 13% revenue decline to SEK 769.5 million, reflecting efficiency gains and cost savings.

• Q4 EBITA was SEK 2.8 million, down from SEK 6.0 million year-over-year, mainly due to weak performance in Bygg & Miljö.

• Net profit for 2024 was SEK 17.4 million, reversing a loss of SEK -11.4 million in 2023; earnings per share improved to SEK 0.72 from SEK -0.47.

• No dividend is proposed for 2024; focus remains on intensified sales, efficiency, and targeted recruitment for profitable growth.

• Cost efficiency measures and increased hourly rates contributed positively, but market conditions remained subdued.

Financial highlights

• Q4 2024 net revenue was SEK 196 million, down 15% year-over-year, impacted by fewer working days and employees.

• Full-year EBITA margin improved to 3.9% from 0.5% in 2023; operating margin also rose to 3.9% from -0.4%.

• Cash flow from operating activities increased to SEK 100.2 million from SEK 71.5 million year-over-year.

• Net debt reduced to SEK 192.3 million from SEK 246.2 million at year-end 2023; net debt/EBITDA improved to 2.2x from 2.8x.

• Earnings per share before dilution was SEK 0.72, compared to SEK -0.47 last year.

Outlook and guidance

• Market recovery is expected to be slow, with continued cautious investment sentiment, especially in commercial and residential property.

• Focus remains on intensified sales, efficiency improvements, and recruitment in growth segments.

• Recruitment will target areas with the highest growth potential.