OCTOBER–DECEMBER 2024
Order intake increased 51.1% to EUR 61.5 million (40.7)
Revenue decreased -15.1% to EUR 45.4 million (53.5)
EBIT decreased -11.6% to EUR 3.6 million (4.0) and the EBIT margin increased to 7.9% (7.6%)
Net result for the period decreased -30.5% to EUR 1.6 million (2.4)
Operating cash flow decreased -55.9% to EUR 2.3 million (5.2)
Earnings per share, basic and diluted, decreased -31.8% to EUR 0.015 (0.022)

JANUARY–DECEMBER 2024
Order intake increased 13.0% to EUR 177.8 million (157.4)
Order backlog increased 2.3% to EUR 126.4 million (123.6)
Revenue decreased -3.2% to EUR 175.0 million (180.7)
EBIT improved 50.7% to EUR 10.9 million (7.2) and the EBIT margin increased to 6.2% (4.0%)
Net result for the period increased to EUR 3.8 million (0.2)
Operating cash flow increased to EUR 6.2 million (1.9)
Earnings per share, basic and diluted, improved to EUR 0.036 (0.002)
Net debt decreased to EUR -15.3 million from EUR -18.6 million at year-end 2023 and the leverage ratio improved to 0.91x from 1.29x

KEY EVENTS DURING THE FOURTH QUARTER
Shore power orders for two Mediterranean ports, worth a total of EUR 6.5 million.
Shore power orders for three Italian ports, worth a total of EUR 7 million.
Shore power order with global shipping company, worth EUR 4 million.
Order for automated mooring system for Port of Dublin.
Order with Qwello for 1,000 spring cable reels for electric vehicle charging stations across Europe.

KEY EVENTS AFTER THE END OF THE YEAR
New members of Cavotec Management Team appointed; Jonathan Eriksson appointed Head of Industry Division, Nicklas Vedin appointed Head of Ports & Maritime Division. Patrick Mares, in Group Management since 2019, appointed Product Management and Chief Technology Officer.

Comment from the CEO
Strengthened competitiveness and continued improved profitability

We ended 2024 with strong order intake, higher order backlog and improved operating profitability. In 2024, we have established a stronger Cavotec with higher profitability and strengthened financial position. Thanks to the success of our change programs, we have also been able to invest in product development which have further strengthened our competitiveness. With the continued good demand for our climate-friendly solutions there is a clear potential to continue improving profitability.

The improved order intake of 51.1% in the quarter to EUR 61.5 million is to a large extent driven by strong demand for shore power solutions in Europe and the need to reduce the negative climate impact of shipping. The order backlog also grew in the quarter to EUR 126.4 million which is an increase of 2.3% from the previous quarter. This good development is confirmed by the shore power orders we have announced with a total value of EUR 17.5 million. Customers include five Mediterranean ports of which three in Italy with a combined order value of EUR 13.5 million and a global shipping company with a contract worth EUR 4 million. All orders are to be delivered over the next two years. These orders are clear signs of the strong need to reduce emissions in marine environments, driven by increasingly stringent regulations. They also reflect our ability to deliver innovative systems that meet the evolving needs of the shipping industry.

The order we signed for our automated mooring system for Port of Dublin is a milestone to us since it is the first installation in Ireland and will serve as a benchmark for sustainable port operations in the region.

We have seen a stable, consistent revenue improvement between the last three quarters in 2024. Compared to the strong last quarter of 2023, revenue decreased -15.1% in the quarter to EUR 45.4 million. The robust improvements in 2024 are partly driven by our growing service business. However, we cannot rule out fluctuations between quarters in the future, as we are largely a project-driven company.

Continued increased profitability
In the past two years, we have made significant progress in improving profitability and in the quarter the EBIT margin increased to 7.9%. This is mainly the result of our change programs as well as enhanced cost control and purchasing processes. Through efficient, centrally managed purchasing processes, we have made significant progress in reducing costs for purchased materials. At the same time, we see opportunities for continued profitability improvements, not least in the Industry segment where the change programs started in 2024.

Initial outcome from the assessment of moving the registered office
As we have previously communicated, we have initiated the investigation of potentially moving the registered office from Switzerland to Sweden. A possible move will benefit us by bringing us closer to our investor base and making it easier to recruit in the region. However, we will need to incur some one-time costs for this project which we report as non-recurring.

New products to be launched 2025
Operating cash flow improved significantly in 2024 to EUR 6.2 million from EUR 1.9 million in 2023. This has allowed us to both reduce debt but also invest in product development and innovation. In this work, we have listened carefully to our customers and made significant adjustments that strengthen our competitiveness. I look forward with confidence to our pipeline of new products that will be launched in 2025.

In 2024, we have also successfully expanded our service offering. We currently have a large installed base globally where we see significant untapped potential. The possibilities are many – for example, we can offer maintenance and control of our installed equipment, take over operations from the customer and act as a system integrator.

Strengthened management team
We have started 2025 by strengthening the Cavotec Management Team with two new members – Jonathan Eriksson and Nicklas Vedin who have been given responsibility for the Industry and the Ports & Maritime divisions respectively. Patrick Mares, previously head of the Ports & Maritime division, is our new CTO with responsibility for product management. With these changes, we now have a management team and governance model that allow us to work and allocate resources more effectively.

50 years of innovation
This year marks 50 years since Cavotec was founded. These years have been characterised by innovation, customer focus and the ability to develop solutions that streamline customers’ processes. Over the past ten years, the focus has increasingly shifted to electrifying customers’ processes to meet the need for reduced climate impact and improved environments with lower noise levels. Today, Cavotec is established as a leading global player in the electrification of ports and other industrial and marine applications. We continue our intensive work to further strengthen our position and create value.

The position that Cavotec has established – and not least the improvements we have achieved in recent years – is the result of hard work by our dedicated and professional employees. I would like to conclude by expressing my sincere thanks to all colleagues for a job well done in 2024.

David Pagels
Chief Executive Officer

Webcasted presentation and telco
CEO David Pagels and CFO Joakim Wahlquist will present the year-end report on Friday 21 February at 10:00 am CET. If you wish to participate via webcast, please use the link
https://cavotec.events.inderes.com/q4-report-2024. Via the webcast you may submit written questions. If you wish to participate via teleconference, please register on the link https://events.inderes.com/cavotec/q4-report-2024/dial-in. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. The presentation is in English.

Interim reports on cavotec.com
The full report and previous interim and annual reports are available on https://ir.cavotec.com/financial-reports.

Next report
The first quarter report 2025 is published 25 April at 7:00 am CEST.