Stable results and strong cash flow
Fourth quarter 2024
- Net sales decreased by 0.7 percent and amounted to SEK 7,085 million (7,135)
- Organic growth adjusted for calendar effects was -0.2 percent
- Calendar effects had an impact of SEK -55 million on net sales and SEK -42 million on EBITA
- EBITA excluding items affecting comparability amounted to SEK 586 million (596)
- EBITA margin, excluding items affecting comparability, was 8.3 percent (8.4)
- EBITA amounted to SEK 586 million (541)
- EBITA margin was 8.3 percent (7.6)
- EBIT (operating profit) amounted to SEK 544 million (501)
- Earnings per share amounted to SEK 3.07 (2.77)
January-December 2024
- Net sales increased by 0.7 percent to SEK 27,160 million (26,978)
- Organic growth adjusted for calendar effects was 0.7 percent
- Calendar effects had an impact of SEK -52 million on net sales and SEK -44 million on EBITA
- EBITA excluding items affecting comparability amounted to SEK 2,113 million (2,032)
- EBITA margin, excluding items affecting comparability, was 7.8 percent (7.5)
- EBITA amounted to SEK 2,105 million (1,938)
- EBITA margin was 7.7 percent (7.2)
- EBIT (operating profit) amounted to SEK 1,941 million (1,779)
- Earnings per share amounted to SEK 10.85 (9.71)
- The Board of Directors proposes a dividend of SEK 6.00 (5.50) per share for 2024
COMMENTS FROM THE CEO LINDA PÅLSSON
Full-year 2024
In 2024, AFRY delivered improved profitability and sales in line with last year despite facing a less favourable market. We continued to leverage our strong position in the energy sector to capture high demand, while we adjusted capacity to meet the challenging market in segments such as real estate and pulp and paper. Our ongoing improvement programme in Infrastructure showed progress during the year and contributed to the profitability improvement. Entering the new year, we see a global economy that is starting to show signs of slow recovery while we as a company move into the next chapter.
For the full-year 2024, net sales amounted to SEK 27,160 million (26,978) with an organic growth adjusted for calendar effects of 0.7 percent. EBITA excluding items affecting comparability increased to SEK 2,113 million (2,032) corresponding to an EBITA margin of 7.8 percent (7.5), reflecting our efforts to improve profitability despite a challenging market.
Fourth quarter
The financial performance in the fourth quarter was in line with what we delivered in the previous quarters of 2024, with moderate growth and a steady improvement in profitability. Net sales amounted to SEK 7,085 million (7,135) with an adjusted organic growth of -0.2 percent. Strong growth in Energy was offset by lower volumes in Process Industries, which was impacted by a continued weak pulp and paper market. EBITA amounted to SEK 586 million (596) corresponding to an EBITA margin of 8.3 percent, an improvement compared to the calendar-adjusted EBITA margin of 7.8 percent in the same quarter last year. The improvement was achieved despite a lower margin in Process Industries, driven by continued efficiency improvements in Infrastructure as well as profitable growth in Energy.
Operating cash flow was strong in the quarter and amounted to SEK 1,304 million (958), which further strengthened our financial position and provides a solid foundation going forward. The Board of Directors proposes a dividend of SEK 6.00 per share (5.50) for 2024.
We also strengthened our order backlog during the quarter to SEK 20.1 billion, an increase of 2 percent from the end of the third quarter. The increase was mainly driven by Process Industries, which was awarded a project for Arauco's new pulp mill in Brazil as well as the SSAB project for fossil-free steel announced in October. On the energy side, we received an assignment for the design of another of Greenko's large scale pumped storage projects in India as well as a design project for the lifetime extension of the Paks Nuclear Power Plant in Hungary.
Priorities going forward
As I assume the position as President and CEO of AFRY in the first quarter of 2025, I am excited to begin a new chapter in our 130-year history. AFRY is uniquely positioned as a leading partner to our clients within the green transition in the energy, industrial and infrastructure segments. We solve complex client needs in an ever-evolving environment and will create profitable growth by strengthening AFRY's strategic position as well as defining a fit-for-purpose operational structure.
Our efforts will be centred around focusing AFRY's core business, which will include a review of our portfolio and strategic positioning. We will enhance client value by strengthening our capabilities to deliver complex and large-scale projects as well as further developing our client offering. Finally, we will make structural improvements to streamline operational structures to strengthen profitability and support our core business. I am confident that AFRY's current position and future direction provide a strong foundation for driving profitable growth and creating long-term value for all our stakeholders.
This work has already started, and we plan to present our updated strategy in the second half of 2025, while continuously implementing initiatives and measures throughout the year.
Finally, I would like to thank our clients for strong and rewarding partnerships during the year, and all my colleagues at AFRY for their dedicated and hard work. We have a lot of exciting opportunities ahead of us, and I am looking forward to taking the next step on AFRY's journey together with you.
For further information:
Linda Pålsson, President and CEO
Bo Sandström, CFO
Johanna Hallstedt, Investor Relations
+46 72 014 37 45
johanna.hallstedt@afry.com
Head Office: AFRY AB, SE-169 99 Stockholm, Sweden
Visiting address: Frösundaleden 2, Solna, Sweden
Tel: +46 10 505 00 00
www.afry.com / info@afry.com
Corp. ID no 556120-6474
This report has not been subjected to scrutiny by the company's auditors.
This information fulfils the disclosure requirements of AFRY AB (publ) under the provisions of the EU Market Abuse Regulation. This information was released, through the agency of the above-mentioned contact person, for publication on 7 February 2025 at 07.00 CET.
All forward-looking statements in this report are based on the company's best assessment at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.
This is a translation of the Swedish original. The Swedish text is the binding version and shall prevail in the event of any discrepancies.
The full report is available for download.
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