Kitron's Q4 2024 Results Showcase Strategic Resilience
Kitron's Impressive Fourth Quarter Performance
Kitron recently disclosed its financial performance for the fourth quarter, revealing a revenue figure of EUR 160.6 million. The operating profit, or EBIT, amounted to EUR 11.8 million, translating to an EBIT margin of 7.3%. Despite the challenges posed by a softer market, these results highlight the effectiveness of restructuring efforts alongside a steadily improving order backlog.
Growing Order Backlog Signals Future Growth
The order backlog concluded at EUR 472 million, marking the third consecutive quarter of increase, a trend that is continuing to gain momentum into the following year. This growing backlog indicates a promising outlook for Kitron as it navigates the competitive landscape.
CEO Peter Nilsson's Insights
Peter Nilsson, CEO of Kitron, shared valuable insights: "2024 was a year marked by decisive action and resilience. Although we faced challenges in certain markets, our focus on enhancing efficiency and strong execution contributed to effective restructuring efforts. Despite the ongoing de-stocking affecting some sectors, we anticipate these challenges will ease by mid-2025. January's backlog has further grown to EUR 505 million. With an optimized operational base, strategic contract wins, and a proactive approach towards mergers and acquisitions, Kitron is positioned to achieve growth and profitability.
Fourth Quarter versus Previous Periods
When compared to the same quarter last year, Kitron's fourth-quarter revenue decreased from EUR 199.1 million, yet it shows a notable increase from EUR 145.1 million reported in the third quarter of the same year. The standout market sector identified was Defence/Aerospace, showcasing Kitron's ability to thrive in specialized fields.
Financial Performance Analysis
The fourth-quarter operating profit of EUR 11.8 million not only surpassed the midpoint of prior guidance but also illustrated a decline from EUR 18.0 million in the same quarter last year. In contrast, it showed an improvement from the EUR 10.7 million recorded in the third quarter. The profit after tax stood at EUR 4.9 million, down from EUR 12.3 million year-over-year, contributing to an earnings per share of EUR 0.02, a decline from EUR 0.06 last year. Overall, for the entire year of 2024, earnings per share were reported at EUR 0.14, down from EUR 0.26 in 2023.
Proposed Dividend and Future Outlook
The board of directors has recommended an ordinary dividend of NOK 0.35 per share, a reduction from the previous NOK 0.75.
Looking ahead, Kitron is optimistic about 2025, reiterating the expectations articulated at the recent Capital Markets Presentation, where projected revenues are anticipated to range between EUR 600 and 700 million, with operating profits expected between EUR 42 million and EUR 63 million.
Continued Communication and Contact Information
The interim report is set to be presented by CEO Peter Nilsson and CFO Cathrin Nylander. For any additional inquiries, stakeholders are encouraged to reach out to them via telephone or email. Peter Nilsson, President and CEO, can be contacted at +47 94 84 08 50, and Cathrin Nylander, CFO, at +47 900 43 284. For email communications, the investor relations team can be reached at investorrelations@kitron.com.
About Kitron
Kitron stands as a prominent Scandinavian electronics manufacturing services provider, catering to sectors such as Connectivity, Electrification, Industry, Medical Devices, and Defence/Aerospace. The group operates multiple facilities in regions including Norway, Sweden, Denmark, Lithuania, Germany, Poland, the Czech Republic, India, Malaysia, China, and the United States. With a workforce of approximately 2,400 employees, Kitron achieved revenues of EUR 647 million in 2024, showcasing robust company performance.
Frequently Asked Questions
What was Kitron's revenue in the fourth quarter of 2024?
Kitron reported a revenue of EUR 160.6 million in the fourth quarter of 2024.
How much was Kitron's operating profit for the fourth quarter?
The operating profit for the fourth quarter was EUR 11.8 million.
What is Kitron's outlook for 2025?
Kitron anticipates revenues between EUR 600 and 700 million and EBIT of EUR 42 to 63 million.
How does Kitron's performance compare to the previous year?
Revenue decreased from EUR 199.1 million in Q4 of last year, but improved from EUR 145.1 million in the previous quarter.
What dividend did Kitron propose?
Kitron proposed a dividend of NOK 0.35 per share, down from NOK 0.75.
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