In This Article:
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Order Book: SEK52 billion, with Marine at SEK27 billion, Energy at SEK10.6 billion, and Food & Water at SEK14.9 billion.
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Revenue: SEK67 billion for 2024, with SEK18.3 billion in Q4.
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Organic Growth: 7% for the year, 2% in Q4.
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Gross Profit Margin: 34.6% for the year, 34.4% in Q4.
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Operating Income: Increased by 12.7% for the year.
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Adjusted EBITA Margin: 16.6% for the year.
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EPS: SEK17.88 for the year, SEK4.96 in Q4.
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Cash Flow from Operating Activities: SEK12 billion for the year, SEK4 billion in Q4.
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Free Cash Flow: SEK8.8 billion for the year, SEK3 billion in Q4.
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Net Debt: SEK2.4 billion, with a debt to EBITDA ratio of 0.8.
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Return on Capital Employed: 23.2% for the year.
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Dividend Recommendation: SEK8.50 per share, totaling SEK3.5 billion.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alfa Laval AB (ALFVF) reported strong growth in the fourth quarter and full year 2024, with favorable market conditions across most applications.
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The company enters 2025 with a solid SEK52 billion order book and good momentum in the short cycle business.
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Operational cash flow was robust, reaching a record SEK12 billion for the full year 2024.
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The Marine division achieved a record year with a 40% order intake growth in Q4, indicating strong market conditions.
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Service division saw a 13% organic growth in Q4, contributing to an 8% growth for the full year, supported by momentum across all divisions.
Negative Points
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Q4 margins were affected by one-off restructuring costs and project risk exposures, leading to a somewhat weaker seasonal performance.
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The Energy division faced challenges with a weak HVAC and heat pump market, although this was offset by growth in other areas.
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Currency fluctuations had a negative impact on the full year, mainly due to the movement of the US dollar to euro.
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The heat pump market is expected to recover only in the second half of 2025, indicating ongoing challenges in this segment.
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There is uncertainty regarding the order intake for the Marine division from Q2 2025 onwards, particularly in the cargo pumping business.
Q & A Highlights
Q: Can you provide insights into the growth of your data center business and the split between liquid and air cooling? A: The data center business showed good momentum in the second half of 2024, with expectations for continued growth into 2025. The business is approximately SEK2 billion, and while the exact split between liquid and air cooling isn't specified, water cooling is becoming increasingly important. Tom Erixon, President, CEO