Summa Defence (summas) Q3 2024 earnings summary

Executive summary

• Revenue for July–September 2024 rose 20% year-over-year to EUR 18.8 million, with Marine Logistics contributing EUR 15.7 million and Renewable Energy EUR 3.2 million.

• EBITDA for the quarter was EUR 1.4 million (7.6% margin), and operating profit (EBIT) was breakeven; profit excluding non-recurring items was EUR -0.4 million, while including non-recurring items it was EUR -3.8 million due to a sale loss.

• For January–September 2024, revenue increased 25% year-over-year to EUR 58.8 million, with Marine Logistics at EUR 49.8 million and Renewable Energy at EUR 9.0 million.

• Profitability improved in Renewable Energy, but the segment remained loss-making; Marine Logistics faced seasonal and market challenges but maintained acceptable ship utilization.

• A minority stake in Meriaura Oy was sold for EUR 4.6 million, strengthening the balance sheet and supporting future funding and ship investments.

Financial highlights

• Q3 2024 revenue: EUR 18.8 million (Q3 2023: EUR 15.7 million); Q3 EBITDA: EUR 1.4 million (Q3 2023: EUR 1.7 million); Q3 EBIT: EUR 0.0 million (Q3 2023: EUR 0.3 million).

• Q3 profit excluding non-recurring items: EUR -0.4 million; including non-recurring items: EUR -3.8 million (sale loss of EUR 3.3 million).

• 9M 2024 revenue: EUR 58.8 million (9M 2023: EUR 47.1 million); 9M EBITDA: EUR 4.9 million (9M 2023: EUR 4.3 million); 9M EBIT: EUR 0.6 million (9M 2023: EUR 0.2 million).

• 9M profit excluding non-recurring items: EUR -0.6 million; including non-recurring items: EUR -3.9 million.

• Cash and cash equivalents at 30 September 2024: EUR 10.6 million; equity: EUR 37.8 million; equity ratio: 49.9%.

Outlook and guidance

• Demand for Marine Logistics is expected to remain reasonable for the rest of 2024, supported by a strong order backlog and customer interest in low-emission transport.

• Renewable Energy demand is expected to stay at least reasonable, with lower interest rates and stable inflation supporting investment appetite.

• The company aims to achieve profitability in Renewable Energy by focusing on larger solar power installations and improved cost-effectiveness.