Bifogade filer
Railcare Delårsrapport Q424 Final ENG
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | Small Cap Stockholm |
| Sektor | Tjänster |
| Industri | Fordon & Transport |
New contracts strengthen foundation for continued growth.
Fourth quarter
- Consolidated net sales increased by 5.1 percent to SEK 157.0 million (149.3).
- Operating profit (EBIT) amounted to SEK 13.7 million (13.7).
- Earnings per share before and after dilution amounted to SEK 0.13 (0.34).
Full-year 2024, January-December
- Consolidated net sales increased by 12.6 percent to SEK 635.3 million (564.2).
- Operating profit (EBIT) amounted to SEK 66.3 million (70.3).
- Earnings per share before and after dilution amounted to SEK 1.26 (1.83).
- The Board of Directors intends to propose that the Annual General Meeting approve a dividend of SEK 0.70 (0.70) per share for the 2024 financial year.
Railcare has reclassified certain locomotive lease contracts from capacity rent to leasing. This has a positive effect on operating profit (EBIT) but also results in higher financing costs. Assets and liabilities have increased significantly in the Balance Sheet. Comparison periods have been restated according to the new adjustment, and all financial information provided in the report follows the new principles.
Significant events in the fourth quarter
- Railcare signs 5-year agreement with LKAB Malmtrafik.
- Johan Elveros has been appointed as new CFO of Railcare Group AB. He took up his position and joined Group management in January 2025.
Significant events after the end of the fourth quarter
- Railcare signed a new snow clearance contract with the Swedish Transport Administration worth SEK 355 million.
CEO comments
Net sales in the fourth quarter were SEK 157.0 million (149.3) and operating profit amounted to SEK 13.7 million (13.7). This corresponds to an operating margin of 8.8 percent.
“Once again, we delivered a stable quarter with continued growth. The slightly lower margin was the result of ongoing adjustments and organizational expansion to ensure continued growth. The new long-term contracts for contingency operations using clearance locomotives on behalf of the Swedish Transport Administration will be gradually initiated over the coming year. In addition, we signed a long-term agreement with LKAB for raw material transport, and a new snow clearance contract with the Swedish Transport Administration, both of which will commence in 2025. All of these contracts contribute to ensure our long-term stability and provide a strong foundation for continued growth.”
In the contracting operations, the maintenance work continued further into the quarter due to a mild start to the winter. In parallel, the snow clearance contract commenced, which involves snow removal using snow ploughs and snow melters at locations across Sweden selected by the Swedish Transport Administration.
Although weather conditions were favourable for the relining operations, volumes were down on the previous year. This was due to a combination of lower customer demand and uncertainty relating to scheduling work towards the end of the year, as relining operations cannot be carried out at lower temperatures. Operational volumes in the UK remain low, and the outlook for Control Period 7 (CP7) is uncertain. Our short-term focus is on introducing cost reductions and organizational changes.
In the transport operations, Railcare successfully transported the majority of the iron ore concentrate stockpiled by Kaunis Iron at the Pitkäjärvi terminal due to last winter's stoppage on Malmbanan. By increasing capacity to three roundtrips per 24-hour period to the Port of Narvik, instead of the usual two, we gradually reduced the stockpile to normal levels.
In mid-October, we signed a 5-year agreement with LKAB Malmtrafik relating to continued raw material transport, covering the period from 2025 to 2029, with an option for an additional three years. This represents confirmation that our customers prioritize the delivery reliability we offer, as the logistics chain is crucial to profitability.
We are continuing our growth journey by adapting and preparing the business for the next steps ahead. For example, we recruited personnel for the new clearance locomotive assignment in the transport operations, and are strengthening and expanding leadership functions to ensure we are well-prepared for the future.
New long-term snow clearance contract
At the end of January, we signed a new snow clearance contract with the Swedish Transport Administration. The contract spans a six-year period, including a two-year option, with a total value of just over SEK 350 million. The assignment begins in October 2025. The snow clearance contract is crucial for maintaining capacity utilisation during the winter season. It is also a prerequisite for ensuring the profitability of the contracting operations year-round. The fact that we won this long-term contract highlights the Swedish Transport Administration's continued strong demand for our proprietary snow melters and snow ploughs.
New locations for clearance locomotives initiated
In January 2025, contingency operations began in two new locations, and will be followed by two more in May 2025. This will lead to increased volumes within transport operations as the new locations become operational. In 2025, sales will increase by SEK 40 million from these assignments, and once all new assignments are fully operational in 2026, the annual sales increase will be SEK 80 million. Delivery of the new EffiShunter locomotives is underway, with the first five locomotives delivered by the end of the year.
Exploring future investments for the locomotive workshop
The locomotive workshop has experienced strong growth in recent years. We foresee continued growing demand for the locomotive workshop's services, driven by the industry's transition and the installation of the new ERTMS signalling system. As part of evaluating opportunities for the long-term development of the business, Railcare signed an agreement to acquire the company that owns the property where the workshop is located. Work is underway to analyse the needs and scope of future investments in the locomotive workshop. A detailed planning process is currently underway and is expected to continue throughout 2025.
Well-equipped to drive vision and strategy
Railcare has a new Group Management team as of early 2025. The team will include CFO Johan Elveros, Safety Manager Hans Flodmark, HR Manager Sofie Strömberg, and Hanna Hedlund, Head of IR, Communications and Sustainability. The CEO and business area managers were already part of the team. Alongside all our fantastic employees, Railcare is well-equipped to drive both vision and strategy forward, with the goal of achieving our 2027 targets.
Mattias Remahl
CEO