Volati (VOLO) Q3 2024 earnings summary

Executive summary

• Q3 2024 performance was broadly in line with the previous year, with net sales up 4% to SEK 1,917 million, but EBITA declined 3% to SEK 186 million and profit after tax fell 18% to SEK 83 million, amid weak market conditions in four of six platforms.

• Ettiketto Group delivered 15% organic growth and margin improvement, while Salix Group maintained stable margins despite weak demand; Industry segment showed mixed results, with Corroventa performing well and Tornum facing a tough quarter.

• Long-term focus, cost control, and strong market positions support future organic growth and provide a solid foundation for continued acquisition-driven growth.

• Market conditions remain challenging, but structural measures and acquisitions have positioned the group for future recovery.

• Volati joined the Science Based Targets initiative, reinforcing its sustainability commitment.

Financial highlights

• Q3 2024 net sales were SEK 1,917 million, up from SEK 1,847 million in Q3 2023; EBITA was SEK 186 million, down from SEK 192 million.

• Q3 EBITA margin held steady at 10%; earnings per share for Q3 were SEK 0.80, down from SEK 1.03 year-over-year.

• Operating cash flow in Q3 was SEK 177 million, down from SEK 244 million in Q3 2023, mainly due to higher working capital; cash conversion (LTM) was 94%.

• Net debt/adjusted EBITDA ratio at 2.8x, within the 2x–3x target range; net debt increased to SEK 2,189 million.

• Return on adjusted equity was 15% for Q3, matching the target but below the long-term target of 20%; five-year average is 34%.

Outlook and guidance

• No rapid market improvement is expected in the short term, but platforms are well positioned for growth when markets recover.

• External estimates and management expect construction market growth to resume in 2025, with accelerated organic growth and margin improvement once market conditions normalize.

• Signs of gradual improvement are emerging, and acquisition activity is expected to continue.