Fourth quarter, October-December 2024 in brief
- Net sales decreased by 4% to SEK 2,126 m (2,221)
- Operating profit (EBIT) increased by 7% to SEK 206 m (193)
- Profit before tax (EBT) increased by 14% to SEK 209 m (182)
- Profit margin before tax (EBT %) was 9.8% (8.2)
- Profit after tax amounted to SEK 154 m (134)
- Cash flow from operating activities amounted to SEK 288 m (239)
- Earnings per share before dilution amounted to SEK 1.69 (1.46)
Full year 2024 in brief
- Net sales decreased by 5% to SEK 8,554 m (8,968)
- Operating profit (EBIT) increased by 6% to SEK 840 m (792)
- Profit before tax (EBT) increased by 9% to SEK 824 m (757)
- Profit margin before tax (EBT %) was 9.6% (8.4)
- Profit after tax amounted to SEK 666 m (636)
- Cash flow from operating activities amounted to SEK 1,197 m (980)
- Earnings per share before dilution amounted to SEK 7.27 (6.91)
- Equity ratio was 67% (63)
- The Board of Directors proposes a dividend of SEK 1.60 /share (SEK 1.33 /share)
A word from the CEO
2024 quite ok, we scrimp on
In 2024, we have had high margins, good cash flow and completed four acquisitions. We have managed to adapt costs to the current market situation in a good way. In the fourth quarter, our operating margin before tax was 9.8%, despite a 4% decline in sales compared to the same period previous year. During the year, we worked intensively to integrate our acquired companies. It is great to welcome new employees and customers to AQ. It's fantastic to see the power of entrepreneurship where satisfied customers choose AQ over other talented competitors.
Acquisition
During 2024, we have acquired seven factories and two engineering offices. The integration of Rockford, JIT Mech and TechROi is proceeding according to plan. These units contribute to long-term profitable growth in our markets of defense, electrification, forestry automation, aerospace and gas turbines.
At the end of December, we signed an agreement to acquire mdexx magnetronics and Michael Riedel, which develops, manufactures and sells inductive components for demanding customers in electrification, railway, automation and medical technology. With this acquisition, we strengthen AQ's ability to develop inductive components, and it increases our production capacity. This, combined with AQ's engineering and factory network, gives us a very strong offering to our customers. The German competition authority has approved the acquisition, and the companies are part of AQ since January 31, 2025 and are expected to increase our annual net sales by approximately SEK 500 m. We welcome our 400 new employees in Weyhe, Ilshofen and Trutnov to AQ.
Several of our acquisitions during the year are aimed at increasing the technology content of our delivery. In 2024, we have increased by 100 engineers in Europe. We believe this will strengthen our competitiveness and contribute to further business opportunities going forward.
Market and investments
In the quarter, we had a negative organic growth of 9% compared to the same quarter last year. That is far from our goal. Demand from our customers in trucks, buses and construction equipment was significantly lower than in the same period last year but on the same level as the volumes in quarter 3 2024.
Our employees do their utmost to be close to our customers and we win new orders and contracts in all market segments. During the fourth quarter, we have primarily received orders in power transmission, electrical automation of cranes and boats, as well as prototypes for all-electric construction equipment and trucks. We have also received new orders for components and systems for customers who manufacture machines for electronics production and industrial dishwashers. Our transformer factory in the US is growing well and has a full order book for 2025. We are expanding capacity there to be able to take more orders.
To meet increased demand, we have decided to invest SEK 10 m in an efficient 15 kW fiber laser cutting machine to be able to cut up to 40 mm thick sheet metal for the defense industry in Europe.
Cash flow and balance sheet
Our cash flow from operating activities is strong as expected when sales volumes decline. We have a net cash position of SEK 284 million, which means that we have plenty of capital to use for continued growth with our customers and to carry out acquisitions.
AQ 30 years of growth and profitability
In 2024, AQ as a company celebrated 30 years. We have grown sales from SEK 18 million to SEK 8.5 billion, with profit every quarter. We have proven that our business model and our culture of decentralized leadership close to the customer works. AQ is stronger than ever. We have a very strong balance sheet, modern and efficient production units, and fantastic employees. We look to the future with confidence and look forward to another 30 years of growth, profit and fun together with our demanding world-class industrial customers. But success does not come by itself. Therefore, I would like to thank all our customers, suppliers and employees - you are fantastic!
James Ahrgren,
CEO
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This disclosure contains information that AQ Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was released for publication by James Ahrgren on 13-02-2025 08:00 CET.
For further information, please contact:
James Ahrgren, CEO and IR, +46 76 052 58 88 or CFO, Christina Hegg, telephone +46 70 318 92 48
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AQ is a global manufacturer of components and systems to demanding industrial customers and is listed on Nasdaq Stockholm's main market. The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås, Sweden. AQ has 8,000 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, Brazil, Great Britain and Czech Republic. In 2024 AQ had net sales of SEK 9 billion, and the Group has since its start in 1994 shown profit every quarter.
www.aqgroup.com
