QleanAir (QAIR) Q3 2024 earnings summary

Executive summary

• Q3 2024 was challenging, with net sales of SEK 113 million (down 8.9% year-over-year), impacted by weaker economic conditions in EMEA, especially Germany, and postponed projects in the Americas.

• APAC delivered stable or strong performance in local currency, particularly in Japan, despite currency headwinds.

• Six new products were launched targeting EMEA and APAC, supporting future growth and immediate orders.

• One-off costs of SEK 7 million from cleanroom project adjustments and inventory write-offs, plus FX effects of SEK 3.7 million, affected results.

Financial highlights

• Sales reached SEK 113 million, down 8.9% year-over-year (5.9% currency adjusted), with recurring revenues at SEK 73 million for the quarter and SEK 301 million on a rolling 12-month basis.

• Adjusted EBIT was SEK 11.3 million (down from SEK 16.8 million), with a margin of 10% (13.5%).

• Gross margin declined to 62% from 67% year-over-year.

• EPS was SEK -0.28, down from SEK 0.70 year-over-year.

• Operating cash flow was SEK 3 million, compared to SEK 18 million in Q3 2023.

Outlook and guidance

• Management expects continued pressure in 2024 due to a lower base of renewable contracts in Japan, a weak yen, and a softer German economy.

• Financial targets remain unchanged: 10% average annual organic growth and 15–20% EBIT margin medium to long term.

• Focus remains on cost control, sales efficiency, and product innovation.