VBG Group (VBG) Q4 2024 earnings summary

Executive summary

• Achieved annual revenue of 5.579 billion SEK and EBITDA of 843 million SEK, with record cash flow from operating activities nearing 800 million SEK for the year and 294 million SEK in Q4.

• Earnings per share rose 3% to 23.52 SEK, prompting a proposed dividend increase to 7.25 SEK, representing 30.8% of profit after tax.

• Despite a 12% year-over-year revenue decline in Q4, gross and EBITA margins improved due to cost management, favorable product mix, and a property sale.

• Achieved second-best annual earnings despite challenging macroeconomic conditions, supported by efficiency improvements and diversification.

• Order intake grew in mid-single digits compared to Q4 2023, with growth outside Europe and North America up 17%.

Financial highlights

• Full-year consolidated sales decreased 2.8% to SEK 5,578.9M, with organic growth at -4.6%.

• EBITDA margin for Q4 reached 15.2%, in line with group objectives; adjusted EBITDA margin was 14.7% after one-offs.

• Net cash position after Q4, adjusted for pension and leasing, was 88 million SEK.

• Profit after financial items rose to SEK 782.2M; EPS increased to SEK 23.52.

• Cash flow from operating activities was SEK 796.4M.

Outlook and guidance

• No formal forecast for 2025; company is preparing for unpredictable macroeconomic and geopolitical developments but remains confident in operational resilience and growth strategy.

• Order intake momentum at the end of Q4 and into early 2025 is expected to positively impact Q2.

• Management anticipates continued market volatility and geopolitical risks but remains optimistic due to strong order intake and cash flow.

• Cost savings are expected to continue but will flatten out, with material cost reductions anticipated.

• Trailer market expected to gradually recover from Q2, with no sharp rebound.