Continued organic growth and stable earnings development in Q4
Q4 2024 highlights
- Order intake for the rolling 12-month period decreased by 10% to SEK 19,419 million (21,684), with organic growth of -6%. The backlog remained solid with a good product mix.
- Revenues increased by 1% to SEK 5,094 million (5,038), with organic growth of 3%.
- Adjusted operating profit (EBIT) amounted to SEK 584 million (582), corresponding to a margin of 11.5% (11.6).
- Operating profit (EBIT) amounted to SEK 393 million (444), corresponding to a margin of 7.7% (8.8), and included metal price effects of SEK -191 million (-138).
- Adjusted earnings per share, diluted, was SEK 1.79 (2.04).
- Earnings per share, diluted, was SEK 1.18 (1.61).
- Free operating cash flow amounted to SEK 202 million (400).
- The Board of Directors proposes a dividend of SEK 2.30 per share (2.00).
CEO's comment
Market conditions
During the quarter, activity levels remained high in for example the Oil and Gas as well as Nuclear segments in the Tube division, and a slight recovery was noted in North America. Market conditions for the other segments were mixed. In the Kanthal division, the Medical business continued on its positive trajectory while customers in Industrial Heating were still somewhat cautious in making investment decisions. Market conditions in the Strip division improved further during the quarter, and demand is now at a good level, driven by stronger conditions in the end markets, primarily in the Consumer segment. Even though market conditions remained somewhat uncertain in some areas, particularly Europe, we noted a gradual improvement during the year for parts of the business.
Order intake for full-year 2024 amounted to SEK 19,419 million (21,684), with organic growth of -6%. This development was primarily attributable to lower order intake in the Oil and Gas segment in the Tube division, compared with the strong backlog build-up in the year-earlier period.
Stable financial performance
Revenues grew organically by 3% during the quarter to SEK 5,094 million (5,038), driven primarily by the Nuclear and Oil and Gas segments. The adjusted EBIT margin amounted to 11.5% (11.6). Revenues for the full year increased organically by 1% to SEK 19,691 million (20,669), and the adjusted EBIT margin was 9.9% (10.4).
Free operating cash flow amounted to SEK 202 million (400) for the quarter, and to SEK 1,266 million (1,688) for the full year, impacted by high levels of activity in our ongoing growth investments. We have a strong financial position, with net cash.
Broad exposure to growing energy needs
Through our strong market position in the energy sector, we intend to continue enabling the transition while we stand strong in traditional types of energy. Despite the energy transition moving somewhat slower than expected, there are areas that are growing at a good pace. In the Nuclear segment, we have received several large orders for steam generator tubing for both conventional and new nuclear power technology, such as small modular reactors (SMRs). With this, we have ensured capacity for several years to come in both the existing production facility and in the steam generator tubing factory which is planned to re-open in late 2026. Developments in biofuels are also moving forward. Our heat exchanger tubes are playing a major role, for example, now that the fuel company Preem is carrying out a historic initiative in sustainable aviation fuel. At the same time, we have a strong offering towards industrial heating and hydrogen, when the markets again regain momentum.
Long-term product portfolio shift yields increased stability
We intend to continue improving the mix across our entire product portfolio to achieve higher profitability and lower volatility. In practice, this means a clear capital allocation strategy towards selected priority segments, but also continuing to develop product offerings in other attractive niches. During the year, we mainly saw clear contributions to an improved product mix from the Medical and Oil and Gas segments. We have also worked on optimizing our production capacity, focusing on higher refinement which has a positive impact on profitability and stability in the margin.
A strengthened Alleima
Overall, I consider 2024 to be yet another successful year in the history of Alleima, with performance in line with our strategic and financial targets. We worked consistently with our strategy of strengthening the company further, both through decisions on new initiatives and by implementing ongoing projects. The acquisition of Endox, a German manufacturer specializing in medical components, further strengthens our offering in the Medical segment.
We enter 2025 with a solid backlog and a tailwind in several of our customer segments while facing challenges in others. During the year we will continue to work on strengthening the company through ongoing initiatives for growth and utilizing the opportunities that come from our favorable exposure to attractive segments. I would like to thank all our customers, employees, shareholders and suppliers for yet another successful year.
Göran Björkman, President and CEO
Conference call and webcast 13:00 CET
A webcast and conference call will be hosted on January 24, 2024 at 13:00 pm CET. More information and a presentation will be available at www.alleima.com/investors
Dial-in details for the conference call
- Sweden: +46 (0) 8 5051 0031
- UK: +44 (0) 207 107 06 13
- US: +1 (1) 631 570 56 13
Link to webcast
-Webcast
Sandviken, January 24, 2025
Alleima AB (publ)
Contact details
Emelie Alm, Head of Investor Relations
Emelie.alm@alleima.com
Phone: +46 (0) 79 060 87 17
Yvonne Edenholm, Press and Media Relations Manager
Yvonne.edenholm@alleima.com
Phone: +46 (0) 72 145 23 42
About Alleima
Alleima, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products like seamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden, had approximately 6,500 employees and revenues of about 20 billion SEK in about 80 countries in 2024. The Alleima share was listed on Nasdaq Stockholm's Large Cap list on August 31, 2022 under the ticker 'ALLEI'. Learn more at www.alleima.com.
This information is information that Alleima AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11.30 AM CET on January 24, 2025.
