Wall to Wall Group (WTW-A) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was SEK 206.0 million, down from SEK 217.4 million year-over-year; adjusted EBITDA was SEK 21.5 million (10.4% margin), and adjusted EBITA was SEK 5.6 million (2.7% margin).

• Net earnings for Q3 rose to SEK 20.7 million from SEK 4.4 million year-over-year; EPS increased to SEK 1.52 from SEK 0.32.

• The pipe relining and energy segments saw sluggish development, while pipe flushing continued strong performance.

• André Strömgren was appointed CEO in October 2024, succeeding Joachim Welin.

Financial highlights

• Q3 net revenue declined 5.2% year-over-year; adjusted EBITDA margin decreased to 10.4% from 11.6%.

• Adjusted EBITA margin fell to 2.7% from 5.1% year-over-year.

• Operating profit (EBIT) for Q3 was SEK 23.6 million, up from SEK 11.2 million, driven by items affecting comparability.

• Net debt increased to SEK 233.7 million from SEK 135.8 million at year-end 2023; net debt/adjusted EBITDA R12 was 2.3x.

• Cash flow from operating activities for the nine months was SEK 36.1 million, up from SEK 2.5 million year-over-year.

Outlook and guidance

• Improved market conditions in Q3 with increased inquiry activity and stronger sales, positively impacting the order book.

• Normalized demand for relining and energy expected to have some impact in late 2024 and full impact from 2025.