Q4 2024 Kitron ASA Earnings Call Transcript
Key Points
- Kitron ASA (FRA:KP5) reported a strong performance in the defence and aerospace sector, with a 22% year-over-year growth and a 23% increase in order backlog.
- The company secured several new contracts, including a NOK 15 million maritime IoT deal and a USD 5 million US Army defence contract, expanding its footprint in the US.
- Kitron ASA (FRA:KP5) is investing in new facilities in Norway and Sweden to accommodate growing demand, indicating confidence in future growth.
- The underlying EBIT margin improved to 8.4% when excluding one-time costs, showcasing strong operational control.
- The order backlog reached NOK 505 million by January 2025, the highest level since mid-2023, driven by defence aerospace and electrification sectors.
- Overall revenue declined by 16.5% year-over-year, with significant drops in key sectors such as connectivity and electrification.
- The company faced a 34% decline in the CE market, primarily due to weakened electrification demand.
- Kitron ASA (FRA:KP5) incurred NOK 4.8 million in one-time restructuring costs in early 2024.
- The electrification sector showed a 32% decline year-over-year, with consumer-driven electrification remaining uncertain due to economic pressures.
- Operating cash flow was below last year's level, and net income decreased to NOK 4.9 million from NOK 12.3 million the previous year.
I'm Peter Nilsson, Chief Executive Officer of the Kitron Group, and joining me as usual, is Ms. Cathrin Nylander, Chief Financial Officer. Following today's brief presentation, we'll have a Q&A. So please post any questions you may have in the Q&A section of the webcast.
Thank you. Next slide, please.
Let's take a look at an overview of the quarter and the full year 2024 numbers.
Kitron delivered a Q4 revenue of close to NOK 161 million with a 7.3% margin, contributing to a full year revenue of just over NOK 647 million, or a 7.4% margin. Throughout the year, demand softened across key sectors such as connectivity, electrification and industry leading to a 16.5% year-over-year decline. The CE market fell by 34%, primarily due to weakened electrification demand, while Asia declined 19%, affected by reduced connectivity investments driven by a downturn in capital investments in manufacturing.
Defence and aerospace was a bright spot, growing quarter-over-quarter and year-over-year, as well as the backlog
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