TCECUR Sweden (TCC) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were 149.5 MSEK, down 13.7% organically year-over-year, mainly due to lower demand from two major Sectragon customers.

• Recurring revenues grew 12.7% to 67.7 MSEK, now 11.9% of total sales, supporting future profitability.

• EBITA for Q4 was 5.2 MSEK (3.5% margin), and net income was 1.6 MSEK, both significantly lower than last year.

• Full-year 2024 net sales reached 570.2 MSEK, with an organic decline of 2.8%; net income was -9.9 MSEK.

• Cost-saving and restructuring actions, including integration of Sectragon International and 9 MSEK in savings, were implemented.

Financial highlights

• Q4 order backlog was 175.2 MSEK (down from 186.6 MSEK), with recurring revenue backlog at 67.7 MSEK.

• Q4 EBITA margin fell to 3.5% from 8.9% year-over-year; full-year EBITA margin was 0.4% (5.7%).

• Cash flow from operations remained strong at 23.0 MSEK for Q4 and 44.5 MSEK for the year.

• Net debt reduced to 31.8 MSEK (from 45.8 MSEK), but Net Debt/Adjusted EBITDA increased to 2.8x (1.2x).

• Average number of employees decreased to 215 in Q4 (from 224).

Outlook and guidance

• Focus remains on efficiency, profitability, and sustainable growth, with strategic acquisitions as a long-term priority.

• Recurring revenues and cost control are expected to support future earnings stability.

• The company sees growing demand for advanced security solutions amid increasing complexity in security threats.