W5 Solutions (W5) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a 6% year-over-year decrease in operating income to SEK 99.7 million, with profitability impacted by lower order intake in 2023 and restructuring costs.

• Net profit for Q2 was SEK -10.6 million, down from SEK 5.9 million in Q2 2023, and earnings per share fell to SEK -0.78.

• The company initiated a new business area structure and incurred one-time restructuring costs of SEK 2.5 million.

• Order intake improved in Q2 2024 to SEK 115 million, up from SEK 86 million in Q2 2023, with an order book of SEK 221 million at period end.

• Significant new framework agreements and strategic partnerships were secured, including a SEK 500 million Power business agreement and a partnership with Exail for flight simulators.

Financial highlights

• Q2 2024 operating income: SEK 99.7 million (Q2 2023: SEK 114.3 million); H1 2024: SEK 196.8 million (H1 2023: SEK 186.0 million).

• Q2 2024 EBITA: SEK -2.7 million (Q2 2023: SEK 22.4 million); H1 2024 EBITA: SEK -0.7 million (H1 2023: SEK 33.1 million).

• Q2 2024 EBITDA: SEK -0.2 million (Q2 2023: SEK 24.7 million); H1 2024 EBITDA: SEK 4.3 million (H1 2023: SEK 36.5 million).

• Gross margin for Q2 2024 was 63%, consistent with previous quarters.

• Cash flow from operating activities in Q2 2024 was SEK -11.4 million (Q2 2023: SEK -4.1 million); H1 2024: SEK -34.9 million (H1 2023: SEK 21.5 million).

Outlook and guidance

• Management expects improved order intake and growth in the second half of 2024, supported by new large framework agreements and increased export focus.

• The company anticipates a period of higher occupancy and sustainable growth in line with ambitious targets.