Sweden · Delayed Price · Currency is SEK engcon AB Earnings Call Transcripts
Fiscal Year 2025
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Q4 delivered 34% organic net sales growth and 12% order intake growth, led by the Nordics and Europe, but margins were compressed by currency effects and higher costs. Market share rose to 49%, and ERP implementation is expected to reduce costs after Q1 2026.
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Order intake hit record highs in Q3, driven by strong demand in Europe and Asia-Oceania, while net sales remained flat year-over-year. Margins compressed due to less favorable mix and currency headwinds, but long-term growth prospects remain robust with significant untapped market potential.
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Q2 2025 delivered record net sales and order intake, with strong growth in the Nordics and Europe, especially in entry-level products. Margins were pressured by a stronger Swedish Krona and U.S. tariffs, but underlying demand and market penetration remain robust.
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Order intake surged 28% and net sales rose 14% year-over-year, led by strong Nordic and European demand. Operating profit jumped 40%, with gross margin at 46%, while legal and structural milestones were achieved. Currency and supply chain risks remain.
Fiscal Year 2024
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Europe overtook the Nordics as the largest revenue region in 2024, with strong order intake and improved margins despite a weak excavator market. Investments in Asia and the Americas, new product launches, and a move to Nasdaq Stockholm Large Cap are set to drive future growth.
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Q3 2024 saw strong profitability with a 22% EBIT margin and 46% gross margin, driven by robust growth in Europe, while the Nordics and Americas remained weak. Outlook for the Nordics is cautious until Q1 2025, with minor price increases expected for 2025.
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Order intake rose 26% year-over-year, offsetting a 12% decline in net sales, with gross margin at 45%. Europe led growth, while Americas lagged; a stronger recovery is expected in 2025, especially in the Nordics.