Q3 2024 Afry AB Earnings Call Transcript
Key Points
- Afry AB (AFXXF) improved its profitability with an EBITA margin increase from 5.4% to 6.1%.
- The Energy division showed strong growth and stable margins, contributing positively to the overall performance.
- Infrastructure division continued to deliver on margin improvement, aligning with the company's strategic goals.
- Afry AB secured significant projects, including a partnership with SSAB for decarbonizing the steel industry and a pump storage solution in Australia.
- The company maintained a stable order stock at SEK20 billion, indicating a steady pipeline of future work.
- Process Industries faced a challenging market with negative growth of 8.5%, impacting overall performance.
- Demand for IT and telecom consultants was weak, affecting the Industry and Digital Solutions segment.
- Real estate market remained sluggish, contributing to lower levels of activity in the Infrastructure division.
- Negative FX effects impacted growth, with total growth shifting back to negative 1% in Q3.
- Utilization rates were lower than last year, particularly driven by declines in Process Industries.
Dear all, warm welcome to this webcast where we will present the quarter three report for Afry. My name is Jonas Gustavsson, CEO of Afry, and I will start with some summarizing slide. And then I will, as always, invite Bo Sandstrom, our CFO to take you through the financials. So let's start, and then, of course, we will have time for questions in the end. Let's start with the first slide.
As the headline says, we are able to improve profitability while the market that we operate in is quite mixed in the quarter. The growth was basically flat. We had four divisions with underlying positive growth while Process Industries faces a quite challenging market, and we saw negative growth in Process Industries, but flat, ending up at SEK6 billion on sales. As we said, the market is mixed. I will get back to that on the next slide.
We have some really strong segments like the Energy, but also segments that we really face some headwind like Process Industries. The order stock is stable on SEK20 million. Bo will have a slide on that. We
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