Volati (VOLO) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales and EBITDA/EBITA were in line with or slightly below last year, with EBITA at SEK 244 million and an 11% margin, despite challenging construction and telecom markets.

• Operational cash flow improved by 26% year-over-year, reaching SEK 209–210 million.

• Acquisitions and cost-saving measures contributed to results, with two acquisitions completed in H1 and a robust pipeline for future deals.

• Profit after tax fell 14% year-over-year to SEK 132 million, and EPS dropped 15% to SEK 1.43.

• Well-positioned for accelerated organic growth as market conditions improve.

Financial highlights

• Q2 2024 net sales: SEK 2,195 million (-2% YoY); EBITA: SEK 244 million (-2% YoY); annualized sales at SEK 7.6 billion and EBITDA/EBITA at SEK 660/659 million.

• Operating cash flow in Q2 2024 increased to SEK 209–210 million from SEK 166 million a year earlier.

• Cash conversion over the last twelve months at 103%.

• Net debt/adjusted EBITDA at 2.7x, within target range.

• Return on adjusted equity: 17% (down from 22–30% in prior periods).

Outlook and guidance

• No dramatic short-term shifts expected, but positive signs in construction and 5G, especially in North America.

• Anticipates easier comparables and potential market recovery in 2025 for key segments.

• Management expects the second half of the year to be seasonally strong for cash flow.

• Well positioned for continued acquisition-driven growth.