Serstech (SERT) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were KSEK 3,392, a significant decrease from KSEK 13,593 in Q3 2023, due to the absence of large order deliveries in the quarter.

• Five substantial orders secured in the first three quarters, totaling 39 MSEK in sales; order timing remains variable due to tender-based business.

• Post-quarter, a 9.7 MSEK order from Chilean law enforcement was received, to be delivered in Q4 2024.

• Despite strong demand, negative growth is projected for 2024 after a 268% increase in 2023; growth and profitability expected to return in 2025.

Financial highlights

• Q3 2024 EBITDA was KSEK -6,657 (Q3 2023: -329); EBIT was KSEK -8,518 (Q3 2023: -3,333); net earnings were KSEK -8,523 (Q3 2023: -3,427).

• For Jan–Sep 2024, net sales were KSEK 38,935 (Jan–Sep 2023: 58,704); EBITDA was KSEK 344 (17,145); EBIT was KSEK -5,287 (8,215); net earnings were KSEK -5,434 (7,877).

• Cash flow from operating activities in Q3 2024 was KSEK -3,623 (Q3 2023: 12,719); Jan–Sep 2024 was KSEK -3,108 (Jan–Sep 2023: 2,964).

• As of 30 September 2024, cash and bank balances were KSEK 6,906 (17,844); equity was KSEK 42,551 (55,267); equity ratio was 83% (77%).

Outlook and guidance

• No overall growth expected for full year 2024 due to Q3 results and high 2023 base; robust growth and profitability anticipated from 2025 onward.

• Military defense sector expected to contribute significantly starting in 2025.