Saxlund Group (SAXG) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased to 149.0 MSEK from 142.7 MSEK year-over-year, driven by project and aftermarket growth, especially in Germany.

• EBITDA for H1 2024 was -6.5 MSEK, down from -6.2 MSEK, mainly due to lower project margins.

• Net result for H1 2024 was -13.2 MSEK, compared to -11.5 MSEK in H1 2023.

• No major orders were secured in Q2, resulting in a lower order book.

• A rights issue of 70.5 MSEK, guaranteed to 65.5 MSEK, was decided post-period to repay loans and strengthen working capital.

Financial highlights

• Q2 2024 revenue was 73.2 MSEK, down from 75.1 MSEK in Q2 2023.

• Q2 2024 EBITDA was -1.9 MSEK (Q2 2023: -0.7 MSEK); EBIT was -3.0 MSEK (Q2 2023: 0.0 MSEK).

• Q2 2024 net result was -6.5 MSEK (Q2 2023: -1.6 MSEK); EPS was -0.01 SEK (Q2 2023: 0.00 SEK).

• H1 2024 net result per share was -0.02 SEK, unchanged year-over-year.

• Cash and cash equivalents at June 30, 2024, were 6.3 MSEK, down from 29.8 MSEK a year earlier.

Outlook and guidance

• Market conditions remain challenging, but signs of improvement are seen, especially in Germany.

• Swedish bioenergy demand remains low, prompting organizational adjustments.

• Capacity adjustments are expected to show positive effects in autumn 2024 and fully in spring 2025.

• Hydropower segment demand remains strong and results are satisfactory.