Seafire (SEAF) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 declined 9% year-over-year to SEK 211 million, with adjusted EBITA down to SEK 12 million and a margin of 6%.

• Demand remained weak but showed signs of stabilization, with mixed performance across subsidiaries; product companies grew 5% while industrial companies declined 16%.

• Cost-reduction measures are yielding results, but cannot fully offset sales declines; focus remains on earnings and cash flow amid macro uncertainty.

• New CEO Daniel Repfennig took office on August 1, 2024.

Financial highlights

• Q3 net sales: SEK 211 million (-9% year-over-year); adjusted EBITA: SEK 12 million (margin 6%); EBITA: SEK 11 million (margin 5%).

• Q3 operating profit (EBIT): SEK 5 million; basic/diluted EPS: SEK -0.09.

• Cash flow from operating activities in Q3: SEK 1 million, impacted by SEK 2 million tax deferral repayment.

• For Jan–Sep 2024: net sales SEK 693 million (-10% year-over-year), adjusted EBITA SEK 35 million (margin 5%), EBITA SEK 41 million (margin 6%), EBIT SEK -13 million.

• Goodwill impairment of SEK 35 million related to Borö-Pannan in Q2 affected results.

Outlook and guidance

• Market conditions remain uncertain, with stabilization at lower demand levels; Q4 revenue expected in line with Q3.

• No further group-wide cost-saving programs planned, but management remains vigilant.

• Some end markets (e.g., automotive) show no recovery signs, while construction and consumer segments indicate increased activity.