KALMAR CORPORATION, FINANCIAL STATEMENTS REVIEW 2024, 13 FEBRUARY 2025 AT 9:00 AM (EET)
Kalmar's financial statements review January-December 2024: Resilient profitability and strong orders in the fourth quarter
- Orders received increased with 20 percent and totalled EUR 486 (405) million in the fourth quarter, demand has remained stable
- Sales decreased by 14 percent and totalled EUR 440 (509) million in the fourth quarter
- The comparable operating profit margin amounted to 12.1 (11.8) percent in the fourth quarter
- Eco portfolio1 sales represented 41 (40) percent of consolidated sales in the fourth quarter
- Interest-bearing net debt to EBITDA was 0.3x at the end of 2024
- The Board of Directors proposes to the Annual General Meeting (AGM), that of the distributable profit, a dividend of EUR 0.99 for each class A shares and EUR 1.00 for each class B shares outstanding be paid for the financial year 2024
- Kalmar expects its comparable operating profit margin to be above 12 percent in 2025.
The figures in this financial statements review are based on Kalmar Corporation's audited 2024 financial statements.
October-December 2024 in brief:
- Orders received increased by 20 percent and totalled EUR 486 (405) million
- Order book amounted to EUR 955 (31 Dec 2023: 1,024) million at the end of the period
- Sales decreased by 14 percent and totalled EUR 440 (509) million
- Eco portfolio sales represented 41 (40) percent of consolidated sales
- Eco portfolio sales decreased by 10 percent and totalled EUR 182 (202) million
- Operating profit was EUR 39 (53) million, representing 8.8 (10.4) percent of sales. The operating profit includes items affecting comparability worth EUR -14 (-7) million
- Comparable operating profit amounted to EUR 53 (60) million representing 12.1 (11.8) percent of sales, a decrease of 12 percent
- Cash flow from operations before finance items and taxes totalled EUR 64 (129) million
- Profit for the period amounted to EUR 27 (43) million
- Basic earnings per share was EUR 0.42 (0.67).2
January-December 2024 in brief:
- Orders received decreased by 2 percent and totalled EUR 1,679 (1,705) million
- Order book amounted to EUR 955 (31 Dec 2023: 1,024) million at the end of the period
- Sales decreased by 16 percent and totalled EUR 1,720 (2,050) million
- Eco portfolio sales represented 41 (35) percent of consolidated sales
- Eco portfolio sales decreased by 3 percent and totalled EUR 698 (718) million
- Operating profit was EUR 174 (240) million, representing 10.1 (11.7) percent of sales. The operating profit includes items affecting comparability worth EUR -42 (-15) million
- Comparable operating profit amounted to EUR 217 (255) million representing 12.6 (12.4) percent of sales, a decrease of 15 percent
- Cash flow from operations before finance items and taxes totalled EUR 249 (257) million
- Profit for the period amounted to EUR 128 (194) million
- Basic earnings per share was EUR 1.99 (3.01).2
Guidance for 2025
Kalmar expects its comparable operating profit margin to be above 12 percent in 2025.
Vision and strategy
Kalmar is a market leader in heavy material handling equipment with deep-rooted foundations in customer proximity, attractive market, experienced and talented people and strong financial profile.
Kalmar's sales and service network covers over 120 countries, supporting its globally dispersed customer base and extensive installed base of 68,000 machines globally. The company operates mainly through direct sales and a strong global network of dealers. With an assembly-based manufacturing model with four factories and two innovation centers, Kalmar prioritizes building strong and enduring relationships with its material suppliers across the globe. Kalmar's workforce comprises around 5,200 employees of which 1,400 are service engineers. The company believes that attracting and retaining top talent is essential to being the most valued business partner for its customers and the employer of choice for current and future employees. Kalmar is dedicated to responsible business practices and expects its suppliers and business partners to uphold the same high legal and ethical standards.
The industry is facing several megatrends, which are driving renewal across the whole scene. This generates opportunities for Kalmar to provide solutions and solve the challenges customers face. Some of the key opportunities that Kalmar is prepared to address are:
• Safety
• Productivity
• Decarbonisation and electrification
• Changing logistics landscape
• Labour shortage
• Intelligent operations.
To address these opportunities and to create added customer value Kalmar is focusing on three strategic areas:
• Investing in sustainable innovations in the area of decarbonised and electric equipment, digital solutions and automation
• Growing services and expanding our aftermarket footprint with a focus on harvesting on our vast installed base, improving capture rate, increasing the share of recurring business through service contracts and creating customer lifecycle value through an intelligent service offering
• Driving excellence by improving profitability and cash flow generation via sourcing optimisation and process improvement to fund further investments into R&D and organic growth, and distributing profits to shareholders.
Performance targets
Kalmar's Board of Directors has set the following performance targets for 2028:
Financial targets
- Sales growth of 5 percent p.a. over the cycle;
- Comparable operating profit margin of 15 percent;
- ROCE above 25 percent;
Capital structure and sustainability framework
- Leverage (Net debt to EBITDA) under 2x;
- Dividend payout ratio of 30-50 percent per annum;
- Aligned with SBTi targets with 1.5 °C commitment.3
Corporate information and basis for preparation
Kalmar Corporation was formed as a result of the partial demerger from Cargotec Corporation ("demerger"), which was completed on 30 June 2024. The trading in Kalmar Corporation shares on the main market of Nasdaq Helsinki commenced on 1 July 2024.
In this financial statements review, financial information is presented on an actual basis for the consolidated balance sheet as at 31 December, 30 September and at 30 June 2024, and on a carve-out basis for the earlier periods. Statement of income is presented on an actual basis for the period 1 July to 31 December 2024 and on a carve-out basis for all previous periods. The differences in carve-out and actual basis of preparation impacts the presentation of certain key figures. Key figures calculated based on equity, interest bearing debt and net debt are presented only for 30 June 2024, 30 September 2024, and 31 December 2024 information as the previous periods with carve-out information do not reflect the capital structure and financing of Kalmar Group. Key figures based on number of shares are calculated based on the number of shares upon listing of Kalmar Corporation on 1 July 2024 for all the periods before listing. Key figures that are based on market value or trading volume are not presented for periods prior to 1 July 2024.
The carve-out financial statements do not necessarily reflect what the financials would have been had Kalmar operated as an independent consolidated group and had it therefore presented stand-alone consolidated financial information during the periods presented. Further, the carve-out financial information may not be indicative of Kalmar's future performance. The carve-out reporting principles are described in Note 2. Basis of preparation.
Kalmar's key figures
| MEUR | Q4/24 | Q4/23 | Change | 2024 | 2023 | Change |
| Carve-out | Carve-out | |||||
| Orders received | 486 | 405 | 20% | 1,679 | 1,705 | -2% |
| Order book, end of period | 955 | 1,024 | -7% | 955 | 1,024 | -7% |
| Sales | 440 | 509 | -14% | 1,720 | 2,050 | -16% |
| Eco portfolio sales | 182 | 202 | -10% | 698 | 718 | -2.8% |
| Eco portfolio sales, % of sales | 41% | 40% | 41% | 35% | ||
| Operating profit | 38.9 | 53.2 | -27% | 174.4 | 240.2 | -27% |
| Operating profit, % | 8.8 % | 10.4% | 10.1% | 11.7% | ||
| Comparable operating profit | 53.1 | 60.3 | -12% | 216.8 | 254.7 | -15% |
| Comparable operating profit, % | 12.1% | 11.8% | 12.6% | 12.4% | ||
| Profit before taxes | 36.0 | 53.4 | -33% | 172.5 | 241.5 | -29% |
| Cash flow from operations before finance items and taxes | 64.2 | 128.9 | -50% | 249.1 | 256.8 | -3% |
| Profit for the period | 27.0 | 43.3 | -38% | 127.9 | 193.8 | -34% |
| Basic earnings per share, EUR* | 0.42 | 0.67 | -38% | 1.99 | 3.01 | -34% |
| Interest-bearing net debt, end of period | 76 | -123 | > 100% | 76 | -123 | > 100% |
| Gearing, % | 11.9% | n/a | 11.9% | n/a | ||
| Interest-bearing net debt / EBITDA** | 0.3 | n/a | 0.3 | n/a | ||
| Return on capital employed (ROCE), last 12 months, % | 18.7% | 24.4% | 18.7% | 24.4% | ||
| Personnel, end of period | 5,207 | 4,991 | 4% | 5,207 | 4,991 | 4% |
| * Periods before the listing of Kalmar Corporation on 1 July 2024 are calculated based on the number of shares at the listing moment. | ||||||
| ** Last 12 months' EBITDA | ||||||
Statement of income is presented on an actual basis for the period 1 July 2024 to 31 December 2024 and on a carve-out basis for all prior periods. Consolidated balance sheet is presented on actual basis as at 31 December, 30 September and at 30 June 2024, and on a carve-out basis for the earlier periods. Gearing, % and interest bearing net debt / EBITDA are presented only for 31 December 2024 information as the previous periods with carve-out information do not reflect the capital structure and financing of Kalmar Group.
President & CEO Sami Niiranen:
The year 2024 was a defining year for Kalmar in a rapidly changing landscape. There is a lot to be proud of when looking back at our first year journey as an independently listed company, including the successful execution of the demerger and listing process. This year has laid an excellent foundation for our way forward. We managed to generate stable revenues and a resilient margin by successfully leveraging Kalmar's leading position in the market and driving excellence in our operations despite the slower market activity and lower sales volumes in 2024 compared to previous year. We advanced our strategy towards sustainable growth and focused on building upon the strong foundation. I am certain that we have exciting opportunities ahead as we continue to lead our industry towards sustainable innovations with a service-driven mindset.
Financial performance for the full year was solid. Our continued focus on commercial and operational excellence enabled us to deliver a resilient profitability of 12.1% in Q4 and 12.6% in 2024, remaining at a good level given the volume drop. The comparable operating profit amounted to EUR 53.1 million in Q4 and EUR 216.8 million in 2024, and cash flow from operations before finance items and taxes in 2024 was EUR 249 million. Our healthy leverage ratio of 0.3x puts us in an excellent position for executing our growth strategy and gives us the opportunity to provide a good return to our shareholders. The Board of Directors proposes a dividend of EUR 0.99 for each class A shares and EUR 1.00 for each class B shares outstanding to be paid for the financial year 2024.
The cost savings program announced in Q4 2023 delivered EUR 35 million savings compared to the original target of EUR 20 million, which supported margins in 2024. In August 2024 we communicated our driving excellence initiative including a plan to achieve approximately EUR 50 million in gross efficiency improvements by the end of 2026, supporting our goal of a 15% comparable operating profit margin by 2028. This program is progressing according to plan.
Demand has remained on a stable level despite some geographical differences, the most relevant being the softness in the North American distribution customer segment. While dealer stock levels in the US have come down and the situation is gradually improving, demand has still remained subdued in the distribution customer segment and we do not foresee any short-term significant improvement. Our orders received amounted to EUR 486 million in Q4 and EUR 1,679 million in 2024, presenting an overall stable demand. Good momentum was noted in the service business with 15 % growth in orders in the fourth quarter, and while equipment orders declined slightly year on year, our equipment divisions ended the year on a good note, with relatively many large orders won in Q4. Sales amounted to EUR 440 million in Q4 and EUR 1,720 million in 2024, impacted by slower market activity and lower order book compared to previous year. Our sales pipeline remains healthy, and while the order intake can fluctuate depending on the timing of customer decision making, we are confident in our ability to meet our long-term goals, as the underlying long-term demand drivers remain good. Services sales remained more stable than Equipment sales, providing resilience both in terms of sales and profitability.
As we continue the year 2025, we guide that we expect our comparable operating profit margin to be above 12% in 2025. We remain focused on our strategic priorities as we continue our work towards driving sustainable growth by leading the industry towards electrification, accelerating service growth, and driving business excellence. We have an attractive and growing market, and Kalmar is well positioned to gain from the opportunities of safe, electric, intelligent and productive solutions that customers are looking for.
2024 was a year of sustainable innovations with many launches related to electrification. In 2024, 41% of our total sales were attributed to our eco portfolio, highlighting our commitment to sustainable solutions. The year has included several important steps towards sustainable growth; we have decided to expand our Innovation Centre in Ljungby, Sweden, by building a world class test center and we announced our partnership with Elonroad to build a 200-metre electric road at our Ljungby Innovation Centre to pilot dynamic charging of electric vehicles. We also introduced a new range of electric empty container handlers which are designed to minimise energy losses and optimise energy accumulation, we implemented a wide-scale installation of our Kalmar Collision Warning System on straddle carriers of key customers, and we unveiled our new Kalmar Ottawa T2 electric terminal tractor.
Looking ahead, we believe in our ability to capitalise on the growing demand for sustainable and efficient material handling solutions. Our employees, both present and future, are the key to our success. We will continue to innovate and invest in people to drive operational excellence and deliver long-term value for our customers and shareholders. Our extensive installed base of 68,000 machines globally continues to provide a strong foundation for service growth, which we are further accelerating through innovative offerings and digital solutions.
I would like to express my sincere gratitude to all employees for their dedication and hard work throughout this transformative year. I also extend my thanks to our customers and shareholders for their continued support and trust in Kalmar.
Reporting segments' key figures
Orders received
| MEUR | Q4/24 | Q4/23 | Change | 2024 | 2023 | Change |
| Carve-out | Carve-out | |||||
| Equipment | 330 | 270 | 22% | 1,099 | 1,167 | -6% |
| Services | 156 | 136 | 15% | 580 | 538 | 8% |
| Other | 0 | 0 | 0 | 0 | ||
| Total | 486 | 405 | 20% | 1,679 | 1,705 | -2% |
Order book
| MEUR | 31 Dec 2024 | 31 Dec 2023 | Change |
| Carve-out | |||
| Equipment | 831 | 928 | -10% |
| Services | 120 | 90 | 33% |
| Other | 4 | 7 | -39% |
| Total | 955 | 1,024 | -7% |
Sales
| MEUR | Q4/24 | Q4/23 | Change | 2024 | 2023 | Change |
| Carve-out | Carve-out | |||||
| Equipment, external sales | 293 | 358 | -18% | 1,160 | 1,442 | -20% |
| Equipment, internal sales | 0 | 0 | 1 | 0 | ||
| Services | 146 | 145 | 1% | 560 | 567 | -1% |
| Other | 1 | 6 | -88% | 1 | 41 | -98% |
| Elimination of internal sales | 0 | 0 | -1 | 0 | ||
| Total | 440 | 509 | -14% | 1,720 | 2,050 | -16% |
Kalmar management follows external sales for segments.
Operating profit
| MEUR | Q4/24 | Q4/23 | Change | 2024 | 2023 | Change |
| Carve-out | Carve-out | |||||
| Equipment | 24.8 | 49.7 | -50% | 139.4 | 201.8 | -31% |
| Services | 25.7 | 21.2 | 21% | 97.8 | 95.6 | 2% |
| Other | -11.6 | -17.7 | 35% | -62.7 | -57.2 | -10% |
| Total | 38.9 | 53.2 | -27% | 174.4 | 240.2 | -27% |
Comparable operating profit
| MEUR | Q4/24 | Q4/23 | Change | 2024 | 2023 | Change |
| Carve-out | Carve-out | |||||
| Equipment | 35.5 | 49.7 | -29% | 150.1 | 201.8 | -26% |
| Services | 25.7 | 21.2 | 21% | 97.8 | 95.6 | 2% |
| Other | -8.1 | -10.6 | 24% | -31.1 | -42.7 | 27% |
| Total | 53.1 | 60.3 | -12% | 216.8 | 254.7 | -15% |
Comparable operating profit, %
| Q4/24 | Q4/23 | Change | 2024 | 2023 | Change | |
| Carve-out | %-points | Carve-out | %-points | |||
| Equipment | 12.1% | 13.9% | -1.7 | 12.9% | 14.0% | -1.1 |
| Services | 17.5% | 14.6% | 2.9 | 17.5% | 16.9% | 0.6 |
| Other | n/a | n/a | n/a | n/a | ||
| Total | 12.1% | 11.8% | 0.2 | 12.6% | 12.4% | 0.2 |
Telephone conference for analysts, investors and media
A live international telephone conference for analysts, investors and media will be arranged on the publishing day at 10:00 a.m. EET. The event will be held in English. The report will be presented by the President & CEO Sami Niiranen and CFO Sakari Ahdekivi. The presentation material will be available at www.kalmarglobal.comby the latest 10:00 a.m. EET.
To ask questions, please join the teleconference by registering via the following link: https://palvelu.flik.fi/teleconference/?id=50052077. After the registration, the conference phone numbers and a conference ID to access the conference will be provided. Questions can be presented during the conference.
The event can also be viewed as a live webcast at https://kalmar.events.inderes.com/q4-2024. The conference call will be recorded and an on-demand version of the conference will be published at Kalmar's website later during the day.
Please note that by dialling to the conference call, the participant agrees that personal information such as name and company name will be collected.
For further information, please contact:
Sakari Ahdekivi, CFO, tel. +358 50 400 3557
Carina Geber-Teir, SVP, IR, Marketing and Communications, tel. +358 40 502 4697
Kalmar (Nasdaq Helsinki: KALMAR) is moving goods in critical supply chains around the world, with the vision to be the forerunner in sustainable material handling equipment and services. The company offers a wide range of industry shaping heavy material handling equipment and services to ports and terminals, distribution centres, manufacturing and heavy logistics. Headquartered in Helsinki, Finland, Kalmar operates globally in over 120 countries and employs approximately 5,200 people. In 2024, the company's sales totalled approximately EUR 1.7 billion. www.kalmarglobal.com
1 The eco portfolio includes the equipment and services that are defined to be either aligned with the EU Taxonomy or expected to be aligned in the near future.
2 Periods before the listing of Kalmar Corporation on 1 July 2024 are calculated based on the number of shares at the listing moment.
3 Plan following criteria of the Science Based Targets initiative.
Attachment
- Kalmar's financial statements review 2024 (https://ml-eu.globenewswire.com/Resource/Download/4cc2bc0d-13f8-4af6-97bf-d27ba879a6a8)
