Solwers (SOLWERS) Q4 2024 earnings summary

Executive summary

• Revenue reached EUR 78.3 million in 2024, growing 19% year-over-year, driven by acquisitions and organic expansion in Finland and Sweden.

• EBITDA margin was 7.0%, below the 12% midterm target, impacted by increased costs, one-off items, and write-downs.

• EBIT for 2024 was EUR 2.7 million (3.5% margin), down from 7.3% in 2023; EPS at EUR 0.11, down from EUR 0.32.

• Six to seven acquisitions completed in 2024, expanding operations in Sweden, Finland, and establishing a subsidiary in Poland.

• Board proposes a dividend of EUR 0.024 per share, totaling EUR 244,000, in line with policy to pay 20% of profit.

Financial highlights

• Revenue grew by EUR 12.3 million (18.6%) year-over-year; H2 revenue growth was 17%.

• EBIT for 2024 was EUR 2.7 million (3.5% margin); Q4 EBIT was EUR 0.3 million.

• EBITDA for 2024 was EUR 5.5 million (7% margin); H2 EBITDA was 5.9%, affected by one-off impacts.

• Net profit for 2024 was EUR 1.2 million, down from EUR 3.2 million in 2023.

• Cash balance at year-end was EUR 11.6 million; net cash flow from operations was EUR 4.3 million.

Outlook and guidance

• Order backlog has grown steadily since mid-2024, with positive signs of recovery in Finland and stable demand in Northern Sweden.

• Market recovery in Finland and Sweden is expected to be modest in early 2025, with stronger improvement anticipated in H2 2025.

• Focus areas for 2025: continued growth via acquisitions, organic growth, cost cutting, and profitability improvement.

• Midterm targets remain: 20% growth, 12% EBITDA margin, and maintained equity ratio.