TCECUR Sweden (TCC) Q2 2024 earnings summary

Executive summary

• Organic revenue growth of 3.0% in Q2 2024, with net sales reaching 144.96 MSEK, surpassing the previous year's record quarter.

• Recurring revenues increased to 65.4 MSEK, now 10.9% of total, reflecting strategic focus.

• EBITA declined to 1.19 MSEK (0.8% margin), impacted by ongoing investments and lower one-off items compared to Q2 2023.

• Order backlog remains strong at 194.4 MSEK, close to last year's record, with segment variations.

• Updated strategy prioritizes stable, profitable growth and increased recurring revenue share.

Financial highlights

• Net sales for H1 2024 reached 302.56 MSEK, up 4.7% year-over-year.

• EBITA for H1 2024 was 4.48 MSEK (1.5% margin), down from 13.13 MSEK (4.5%) in H1 2023.

• Net result after tax for Q2 2024 was -1.97 MSEK, compared to -1.09 MSEK in Q2 2023.

• Cash flow from operations improved to 6.84 MSEK in Q2 2024 (0.72 MSEK in Q2 2023).

• Liquidity at quarter-end was 17.4 MSEK, with net debt/EBITDA at 1.0x.

Outlook and guidance

• Market outlook remains positive, with sector growth expected to exceed 10% annually.

• Long-term targets: 10% annual revenue growth, 10% EBITA margin, 20% recurring revenue share, net debt/EBITDA below 2.5x.

• Focus on profitability and selective acquisitions, with future M&A to be financed by equity and debt.