Solid profitability and strong cash flow
Quarter 4, 2024
- Orders received amounted to SEK 1,408m (1,467), equivalent to a currency neutral decline of 4.8 percent compared with the same period last year.
- Net sales amounted to SEK 1,620m (1,501), equivalent to currency neutral growth of 7.6 percent compared with the same period last year.
- Adjusted EBITA was SEK 185.1m (171.6), giving an adjusted EBITA margin of 11.4 percent (11.4).
- Operating profit amounted to SEK 157.3m (149.2), corresponding to an operating margin of 9.7 percent (9.9).
- Net profit was SEK 87.4m (77.3).
- Earnings per share were SEK 2.49 (2.20).
- Cash flow from operating activities amounted to SEK 245.4m (212.3).
January – December, 2024
- Orders received amounted to SEK 5,780m (6,005), equivalent to a currency neutral decline of 3.3 percent compared with the same period last year.
- Net sales amounted to SEK 5,900m (6,188), equivalent to a currency neutral decline of 4.0 percent compared with the same period last year.
- Adjusted EBITA was SEK 707.6m (714.9), giving an adjusted EBITA margin of 12.0 percent (11.6).
- Operating profit amounted to SEK 592.5m (592.8), corresponding to an operating margin of 10.0 percent (9.6).
- Net profit was SEK 345.2m (340.9).
- Earnings per share were SEK 9.83 (9.71).
- Cash flow from operating activities amounted to SEK 595.9m (576.3).
- The Board of Directors proposes a dividend of SEK 4.00 (3.95) per share.
CEO’s comments
“Stronger market positions in an uncertain macro environment
In a year dominated by recession and geopolitical uncertainty, we accelerated the pace of innovation, increased operational efficiency and strengthened our position in structurally growing industries throughout the world. In the fourth quarter, we reported increased sales, solid profitability, strengthened cash flow and also a minor but strategically important acquisition.
I am satisfied with our performance in 2024. In an uncertain macro environment, the environmental technology company Nederman continued to advance its positions, with a healthy level of profitability. During the fourth quarter, sales amounted to SEK 1,620m (1,501), equivalent to currency neutral growth of 7.6 percent, which resulted in sales of SEK 5.9 billion for the full year. Orders received in the fourth quarter amounted to SEK 1,408m (1,467), corresponding to a currency neutral decrease of 4.8 percent. This means that the order backlog is somewhat lower at the beginning of 2025 compared with the same time last year. The adjusted EBITA margin for the fourth quarter of the year was 11.4 percent (11.4), bringing the figure for the full year to 12.0 percent (11.6); yet another step closer to our target of 14 percent. The gross margin strengthened further in the fourth quarter and amounted to 39.4 percent (36.3) for the full year. It is clear that our efforts in areas such as production efficiency and pricing are yielding results. Despite continued investments in production and logistics, as well as acquisition activities, we were able to report a strong cash flow for both the fourth quarter and the full year. As I mentioned in the third-quarter report, we have intensified our efforts to identify new companies that could complement our range, which – in addition to the acquisition of the Canadian company Duroair Technologies in August – led to us at the end of the year acquiring the Danish company Olicem, a leading European player in emissions reporting.
We are unable to influence the economy and geopolitics, but we can influence what we do ourselves. This simple philosophy certainly permeated the work at Nederman in 2024. Investments in production and logistics, including RoboVent and Nordfab in the US and in Helsingborg, are a key part of this. Investments are currently being made in all divisions and regions to enhance efficiency and implement upgrades, not least for faster and more precise deliveries – a particularly important consideration for customers in such rapidly growing segments as EV batteries and semi-conductors. What really sets us apart from our competitors is our focused work on developing our range. We are now stepping up the pace further. With the new innovation centre in Helsingborg, which was opened this week, and intensified investments in our 14 innovation hubs around the world, we will be able to gradually roll out a continually improving range. This includes upgrades of existing product platforms as well as completely new innovations, as well as more connected products and systems. Recently, we strengthened our own innovation capacity by way of recruiting a large number of new engineers and other technically skilled employees.
STABILITY IN OUR DIVISIONS
All four divisions increased sales in the fourth quarter. However, the scenario was more varied for orders received. Extraction & Filtration Technology had significantly fewer large orders, but a continued strong base and service business, and a new sales record for a single quarter. Process Technology noted a new record EBITA margin for full year 2024, but closed with a lower order backlog, while positions were advanced in key segments. Duct & Filter Technology’s production and logistics initiatives in all regions generated new increases in sales and orders received, with major orders from EV battery manufacturers. The full year saw records for all key performance measures. Monitoring & Control Technology displayed healthy sales and order growth during the quarter, with the trend in APAC – and China in particular – standing out. The acquisition of Olicem gives the division an even stronger position in Europe.
SHORT-TERM UNCERTAINTY
We foresee a relatively subdued and more uncertain macro environment in the coming quarters. This means that even if the development in our divisions is overwhelmingly positive, the risk has increased somewhat that customers will defer making major investments. In addition, we see a continued risk that geopolitical developments may lead to increased protectionism in the long term. At the same time, I can confirm that Nederman stands strong, not least in terms of a healthy order backlog, new initiatives in product development and the ability to increase sales in industries with good structural growth. Although we are slightly more uncertain about developments in the coming quarters, we are convinced of continued favourable long-term prospects for our industry and for us as market leader.
Sven Kristensson, VD”
For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: [email protected]
Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: [email protected]
This information is information that Nederman Holding AB 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 08:00 a.m. CET on February 13, 2025.
About Nederman
Nederman is an environmental technology company and a global leader in industrial air filtration dedicated to extracting, transporting and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with innovative IoT technology, we monitor and optimise performance and validate emissions compliance to protect people, planet and production.
The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2,500 employees and a presence in more than 50 countries. Learn more at nedermangroup.com
Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden
Corporate registration number: 556576-4205