Softronic (SOF) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 increased by 5.2% year-over-year to SEK 193.4 million, with organic growth of about 5%.

• Pre-tax profit for Q3 rose 11.3% to SEK 32.4 million, with a pre-tax margin of 16.8% (up from 15.8%).

• For January–September, revenue grew 1.8% to SEK 630.3 million, and pre-tax profit increased 3.1% to SEK 74.1 million.

• The business mix, with a high share of managed services and SaaS, provided resilience amid a cautious IT market.

• New and extended contracts, including with Naturvårdsverket, contributed to performance.

Financial highlights

• Q3 EBITDA increased 10.6% to SEK 35.5 million; EBITDA margin was 18.4% (17.5%).

• Net income for Q3 was SEK 25.6 million, up from SEK 23.0 million; EPS rose to SEK 0.49 (0.44).

• Cash flow from operations in Q3 was SEK 38.9 million, a significant improvement from SEK -5.0 million last year.

• For the nine months, EBITDA was SEK 82.5 million (up 1.4%), and net income was SEK 58.2 million (up from SEK 56.5 million).

• Cash and cash equivalents at period end were SEK 106.5 million; total liquidity including unused credit was SEK 129 million.

Outlook and guidance

• The company continues to see strong demand for security, cloud transformation, and CRM solutions.

• Recruitment is ongoing at a higher pace than earlier in the year to support future growth.