High level of activity and good orders received

• Orders received amounted to SEK 1,437m (1,488), equivalent to a currency neutral decline of 0.3 percent compared with the same period last year.
• Net sales amounted to SEK 1,416m (1,574), equivalent to a currency neutral decline of 6.8 percent compared with the same period last year.
• Adjusted EBITA was SEK 160.8m (175.4), giving an adjusted EBITA margin of 11.4 percent (11.1).
• Operating profit amounted to SEK 129.0m (148.0), corresponding to an operating margin of 9.1 percent (9.4).
• Net profit was SEK 70.4m (85.4).
• Earnings per share were SEK 2.00 (2.43).
• Cash flow from operating activities amounted to SEK 180.9m (137.4).

• Orders received amounted to SEK 4,372m (4,538), equivalent to a currency neutral decline of 2.9 percent compared with the same period last year.
• Net sales amounted to SEK 4,280m (4,687), equivalent to a currency neutral decline of 7.8 percent compared with the same period last year.
• Adjusted EBITA was SEK 522.5m (543.3), giving an adjusted EBITA margin of 12.2 percent (11.6).
• Operating profit amounted to SEK 435.2m (443.6), corresponding to an operating margin of 10.2 percent (9.5).
• Net profit was SEK 257.8m (263.6).
• Earnings per share were SEK 7.34 (7.51).
• Cash flow from operating activities amounted to SEK 350.5m (364.0).

CEO's comments

"Continued investments in a more challenging market

With a strong focus on operational efficiency and high rate of innovation, we are advancing our positions further in a slightly weaker market climate. The third quarter was characterised by favourable profitability, strong cash flow and continued order growth in structurally growing industries throughout the world.

Uncertainty in the global economy is on the increase, driven by growing geopolitical concerns, squeezed margins for households and businesses that are holding off on making major investments. In this challenging environment, we are leveraging our market leadership and actively striving to strengthen our position in various regions and segments. This includes intensified efforts to identify new companies that could complement our range, which has to date resulted in the acquisition of Canadian company Duroair Technologies in August.

During the third quarter of the year, three of our four divisions reported a currency neutrally positive development in orders received and sales. For the group as a whole, orders received decreased currency neutrally by 0.3 percent to SEK 1,437m (1,488) and sales decreased currency neutrally by 6.8 percent to SEK 1,416m (1,574). The marginal decrease in orders received, which I am satisfied with considering the current market climate, and the lower sales, were mainly due to a drop in the number of major orders and fewer project deliveries in Process Technology. In addition, the fact that a significant number of orders were received at the end of the period meant that deliveries could not be completed before the end of the quarter. Finally, Hurricane Helene had a negative impact on sales during the quarter as a number of customers could not receive deliveries in the latter part of September. However, the strong orders received in September helped to increase order backlog, which supports sales in the current quarter. The adjusted EBITA margin was 11.4 percent (11.1), compared with our target of 14 percent. A growing service business is helping to boost margins. Qualified service to guarantee continuous operation among customers is becoming an increasingly important part of our business.
 

Despite dampened demand in certain industries and markets, we continued to invest in growth-enhancing activities. We are increasing capacity at several of our plants and investing in automation technology and more efficient deliveries to our customers. Our strength in product development is being fully utilised, with new investments in digital concepts and systems that help customers to improve air quality, reduce environmental impact and optimise their production processes. During the quarter, we gained access to our new, ultra-modern facility in Helsingborg, and we will gradually move operations into the premises over the coming months. As a leading global environmental technology company in advanced air filtration, we are building up further technical cutting-edge expertise to strengthen our position in structurally growing industries, where system solutions and digitalised processes are often central. The acquisition of Duroair Technologies complements our range with new solutions in growing sectors, such as the defence industry and aeronautics. During the quarter, we launched a new, mobile high-vacuum solution for explosive environments and continued the development of the next generation of Insight products.

HIGH LEVEL OF ACTIVITY IN OUR DIVISIONS

Our divisions continued to demonstrate a high level of activity during the quarter, with stronger positions in prioritised industries and markets. Extraction & Filtration Technology achieved its highest ever level of orders received, driven in part by large orders in service and the defence sector. Process Technology's orders received and sales declined, but included new major orders in aluminium recycling. Duct & Filter Technology's production and logistics initiatives in the US have led to faster deliveries, higher profitability and stronger positions in, for example, the high-capacity battery industry. Monitoring & Control Technology showed healthy order growth and advanced collaborations in the oil and gas industry and in strategic environmental projects.

STILL CAUTIOUSLY POSITIVE

Even if the performance of our divisions was largely positive, the risk remains that a weaker economic outlook will impact customers' investment decisions. Moreover, we believe that there is a risk that the growing geopolitical uncertainty could eventually lead to increased protectionism. However, Nederman stands strong in this macro environment. In view of our large order backlog and our ability to increase our share of sales in industries with good structural growth, we take a cautiously positive view of opportunities in the next few quarters.

Sven Kristensson, VD"

For further information, please contact:
Sven Kristensson, CEO
Telephone: +46 42 18 87 00
e-mail: sven.kristensson@nederman.com
 

Matthew Cusick, CFO
Telephone: +46 42 18 87 00
e-mail: matthew.cusick@nederman.com
 

This information is information that Nederman Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on October 22, 2024.

About Nederman
Nederman is an environmental technology company and a global leader in industrial air filtration dedicated to extracting, transporting and cleaning air to make industrial production more efficient, safe and sustainable. Based on industry leading products, solutions and services in combination with innovative IoT technology, we monitor and optimise performance and validate emissions compliance to protect people, planet and production.

The Nederman Group is listed on Nasdaq Stockholm. The Group has approximately 2,500 employees and a presence in more than 50 countries. Learn more at nedermangroup.com

Nederman Holding AB (publ), P.O. Box 602, SE-251 06 Helsingborg, Sweden
Corporate registration number: 556576-4205