TCECUR Sweden (TCC) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 118.1 MSEK, down 4.9% organically year-over-year, with recurring revenues up 21.9% to 65.97 MSEK, now 11.1% of total revenue.

• EBITA for Q3 was -7.6 MSEK, impacted by 6.9 MSEK in restructuring costs; adjusted EBITA was -0.7 MSEK.

• Order backlog decreased to 174.6 MSEK from 214.0 MSEK year-over-year.

• Strategic actions include cost savings of 9 MSEK annually and intensified operational efficiency.

• New CEO appointed and integration of Sectragon International into AWT completed.

Financial highlights

• Q3 net sales: 118.1 MSEK (124.3), organic growth -4.9% (7.6%).

• EBITA: -7.6 MSEK (4.9), margin -6.5% (3.9%). Adjusted EBITA: -0.7 MSEK.

• Net income: -9.0 MSEK (0.8).

• Cash flow from operations: 7.5 MSEK (-1.8).

• January–September net sales: 420.7 MSEK (413.3), organic growth 1.8%.

• January–September EBITA: -3.1 MSEK (18.0), margin -0.7% (4.4%).

Outlook and guidance

• Security market expected to continue growing, with rising demand for integrated solutions.

• Focus remains on profitability, operational efficiency, and increasing recurring revenues.

• Strategic acquisitions planned for a later stage to strengthen market position.