Full Year 2024 Kalmar Oyj Earnings Call Transcript
Key Points
- Kalmar Corp (OHEL:KALMAR) achieved a record high in quarterly orders received in two years, with a 20% increase compared to the previous year.
- The company maintained a resilient profitability with a comparable operating profit margin of 12.6%, slightly up from 12.4% in 2023.
- Kalmar Corp's Eco portfolio share of sales remained high at 41% for the full year 2024, indicating strong customer interest in hybrid and electric solutions.
- The services segment showed significant improvement, with profitability reaching 17.5% in the fourth quarter, up from 14.6% in the previous year.
- The company has a strong financial profile with low leverage at 0.3 times and a strong cash conversion rate of 104%.
- The US distribution segment remains a challenge with subdued demand and ongoing destocking, although there is a gradual improvement.
- The equipment division's profitability was impacted by product mix and volume in the fourth quarter, despite ending the year on a strong note in terms of orders.
- There are uncertainties related to tariffs in the US, inflation, and geopolitics, which could affect future performance.
- The fully electric machine share of equipment orders was only 9% in 2024, indicating sluggish order growth towards the end of the year.
- The return on capital employed decreased to 18.7% due to items affecting comparability, with a 4.1% impact on ROCE.
Good morning, everyone and welcome to Kalmar's Q4 results webcast. My name is Camilla Maikola and I'm from Kalmar's Investor Relations.
Today's results will be presented by our President and CEO, Sami Niiranen and CFO, Sakari Ahdekivi. The presentation will be followed by a Q&A. Please pay attention to the disclaimer as we will be making forward-looking statements.
And now over to you, Sami.
Thank you very much, Camilla and good morning, everyone. I'm pleased to share with you Kalmar's fourth quarters, and full year 2024 results which demonstrate solid financial performance driven by our focus on operational and commercial excellence.
We managed to generate stable revenues and a resilient margin by successfully leveraging Kalmar's leading position in the market and driving excellence in our operations even though we have faced slower market activity and the lower order book compared to previous year.
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