Wall to Wall Group (WTW-A) Q2 2024 earnings summary

Executive summary

• Net sales declined to SEK 242.4 million in Q2 2024, with a comparable basis decline of 11.0% due to weak market conditions and terminated operations.

• Adjusted EBITA dropped to SEK 8.9 million (margin 3.7%) from SEK 24.9 million (margin 10.1%) year-over-year, mainly impacted by Duct Sealing, Geo Energy, and Finnish operations.

• Finnish operations consolidated and merged, with profitability turnaround expected in the second half of the year.

• Market remained cautious, especially in pipe relining, duct sealing, and geothermal energy in Sweden and Finland.

• Order book and market activity improved after a slow start to the year, with positive trends in Denmark and Norway.

Financial highlights

• Q2 2024 net revenue was SEK 242.4–244.9 million, down from SEK 246.7–275.3 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was SEK 24.4–25.1 million (margin 10.1–10.2%), compared to SEK 38.0–43.5 million (margin 15.4–15.8%) in Q2 2023.

• Cash position at quarter-end was SEK 65.3 million; net debt increased to SEK 218.3 million; lease obligations SEK 86.8 million.

• LTM net sales were SEK 1,006.5 million, with adjusted EBITA of SEK 45.7 million (margin 4.5%).

• Cash flow from operating activities in H1 was SEK 22.5 million; investing activities SEK -56.2 million.

Outlook and guidance

• Improvement in net sales and profitability expected in H2 2024, but full-year recovery to prior-year levels is challenging.

• Finnish operations expected to turn profitable in H2 2024.

• Disciplined M&A focus continues, with further acquisitions in prioritized segments anticipated.

• Assessment is more reserved than previously, with cautious growth outlook for comparable entities.

• Order stock improved, especially in pipe relining in Sweden and Finland.