- Adjusted EBITDA Margin: 16% for Q4 2024.
- Orders Received Growth: 13% increase compared to Q4 2023.
- Sales Decline: 5% decrease from the previous year’s Q4.
- Adjusted EBITA: EUR 203 million, 10% below last year.
- Operating Profit: EUR 167 million for Q4 2024.
- Earnings Per Share (EPS): EUR 0.13 from continuing operations in Q4 2024.
- Cash Flow from Operations: EUR 286 million, a 32% increase from the previous year.
- Aggregates Segment Orders: EUR 294 million, similar to the previous year.
- Aggregates Segment Sales: EUR 290 million, stable compared to last year.
- Aggregates Segment Adjusted EBITA: EUR 46 million, with a margin of 16%.
- Minerals Segment Orders: Close to EUR 1.1 billion, driven by copper and gold customers.
- Minerals Segment Sales: EUR 982 million, with services down 4% and equipment down 11%.
- Minerals Segment Adjusted EBITA: EUR 167 million, with a margin of 17%.
- Dividend Proposal: EUR 0.38 per share, totaling EUR 314 million.
- Operating Profit Margin for 2024: 15%.
- Net Financial Expenses: EUR 80 million, stable from the previous year.
- Effective Tax Rate for 2024: 25%.
- Total Assets: EUR 7 billion, slightly down from the previous year.
- Net Debt: EUR 1.2 billion, flat from the end of September 2024.
- Group Cash Flow from Operating Activities for 2024: EUR 576 million.
- Liquid Funds: EUR 431 million at the end of December 2024.
- Gearing: Just below 45% at the end of 2024.
- Debt to Capital: Just below 36% at the end of 2024.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Metso Corp (OUKPF, Financial) reported a healthy adjusted EBITDA margin of 16% for Q4 2024.
- The company saw a 13% increase in orders received compared to the last quarter of 2023.
- Cash flow from operations grew by 32% year-over-year, reaching EUR 286 million.
- The Minerals segment experienced significant growth in equipment orders, driven by copper and gold customers.
- Metso Corp (OUKPF) proposed an increase in dividends, reflecting confidence in future performance.
Negative Points
- Sales declined by 5% compared to the previous year's last quarter, attributed to past order intake slowness.
- Adjusted EBITA was 10% below the previous year's figure, indicating some profitability challenges.
- The Mobile Equipment market remains soft, impacting both equipment and services orders.
- The company incurred additional warranty costs in the Minerals segment, affecting profitability.
- The sustainability portfolio did not grow in 2024, contrary to the company's targets.
Q & A Highlights
Q: Can you comment on the current state of the Minerals market pipeline compared to 3 or 6 months ago?
A: The pipeline remains strong, and the orders received in Q3 and Q4 are from this pipeline. New opportunities continue to enter the pipeline, maintaining its strength. - Sami Takaluoma, President - Services, Member of the Executive Board
Q: Do you expect the slow decision-making in Mineral services to persist in 2025, or will orders start to pick up?
A: There is a cycle linked to mining customers' reluctance to have extra shutdowns for upgrades. With strong spot prices for gold and copper, hesitation will continue, but we expect orders to come in 2025. - Sami Takaluoma, President - Services, Member of the Executive Board
Q: Regarding the large order from the gold processing plant in Turkey, was it booked in December or January?
A: The order was booked in December. - Eeva Sipilae, Deputy Chief Executive Officer, Chief Financial Officer, Member of the Executive Team
Q: Can you elaborate on the impact of the fire at the Gresik smelter in Indonesia and any potential liabilities?
A: We are working closely with Freeport to ensure a quick ramp-up. We need to replace some equipment, and we're expediting this process. The situation is covered by insurance. - Eeva Sipilae, Deputy Chief Executive Officer, Chief Financial Officer, Member of the Executive Team
Q: How do you see the market outlook for Aggregates in North America, especially with potential improvements in U.S. infrastructure sentiment?
A: The optimistic view is that the underlying economy is strong, and as initiatives and programs move forward, demand should improve. However, recent weeks have been turbulent, so we are cautious in our outlook. - Eeva Sipilae, Deputy Chief Executive Officer, Chief Financial Officer, Member of the Executive Team
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
