Train Alliance Sweden (TRAIN) Q4 2024 earnings summary

Executive summary

• Full-year revenue stable at 272.5 MSEK, nearly unchanged from 2023; Q4 revenue declined to 50.5 MSEK from 62.9 MSEK year-over-year, mainly due to delayed SMARTCargo project start.

• Operating income for 2024 was 36.7 MSEK, down from 38.9 MSEK; Q4 operating income was 7.1 MSEK, down from 11.5 MSEK.

• Net income for 2024 was 28.1 MSEK, compared to 36.9 MSEK in 2023; Q4 net income was 5.4 MSEK, down from 17.5 MSEK.

• EPS for 2024 was 0.35 SEK (0.47); Q4 EPS was 0.07 SEK (0.22).

• No dividend proposed for 2024 due to consolidation needs linked to the SMARTCargo project.

Financial highlights

• Q4 operating margin was 14.1% (18.2%); full-year margin 13.5% (14.3%).

• Cash flow from operations in Q4 was -39.5 MSEK (-17.8); full-year cash flow from operations was 295.1 MSEK (15.6).

• Adjusted net asset value per share at year-end was 35.6 SEK, down from 37.5 SEK.

• Equity ratio improved to 73.3% from 72.3% year-over-year.

• Year-end cash and short-term investments totaled 338.2 MSEK (459.8).

Outlook and guidance

• Management expects positive prospects for 2025, supported by ongoing investments in rail infrastructure and high demand for rail transport.

• SMARTCargo project in Sigtuna, with EU co-financing, is set to ramp up in 2025 and complete by end of 2027.

• Growing consulting revenues from new municipal partnerships anticipated to continue in 2025.