Interim report January-September 2024

Improved profitability in a mixed market

Third quarter 2024

– Net sales decreased by 1.1 percent and amounted to SEK 5,993 million (6,059)

– Organic growth adjusted for calendar effects was 0.1 percent (8.9)

– Calendar effects had a positive impact of SEK 44 million on net sales and SEK 31 million on EBITA

– EBITA, excl. items affecting comparability, was SEK 365 million (326)

– EBITA margin, excl. items affecting comparability, was 6.1 percent (5.4)

– EBITA totalled SEK 365 million (310)

– EBITA margin was 6.1 percent (5.1)

– EBIT (operating profit) amounted to SEK 315 million (270)

– Earnings per share amounted to SEK 1.32 (1.32)

January–September 2024

– Net sales increased by 1.2 percent to SEK 20,076 million (19,843)

– Organic growth adjusted for calendar effects was 1.0 percent (11.9)

– Calendar effects had a positive impact of SEK 21 million on net sales and SEK 13 million on EBITA

– EBITA excl. items affecting comparability was SEK 1,527 million (1,436)

– EBITA margin, excl. items affecting comparability, was 7.6 percent (7.2)

– EBITA totalled SEK 1,519 million (1,396)

– EBITA margin was 7.6 percent (7.0)

– EBIT (operating profit) amounted to SEK 1,397 million (1,278)

– Earnings per share amounted to SEK 7.78 (6.94)

COMMENTS BY THE CEO JONAS GUSTAVSSON

In the third quarter, the profitability was strengthened by improvements in Infrastructure and Energy, and supported by a positive calendar effect. The market is mixed with strong demand in the energy sector, but weak demand in process industries which continued to weigh on our profitability compared to last year.

In the quarter, there was a strong demand in the energy sector, with continued investments in fossil-free electricity production, storage solutions, transmission and distribution. Demand in pulp and paper remains weak, and we note increased uncertainty in the industrial segments, with weak demand in telecom and IT consulting. Within infrastructure, public investments in transport infrastructure are stable, while demand in the real estate segment remains weak.

Net sales amounted to SEK 5,993 million in the third quarter, corresponding to a decrease of 1.1 percent compared to the same period last year. Organic growth adjusted for calendar effects was 0.1 percent. Growth was effected by decreased volumes in Process Industries, while all of the other divisions reported positive adjusted organic growth. The order stock was stable at SEK 20 billion.

EBITA, excluding items affecting comparability, amounted to SEK 365 million (326), corresponding to an EBITA margin of 6.1 percent (5.4). The calendar effect of eight additional hours during the quarter, had a positive impact of SEK 44 million on net sales and SEK 31 million on EBITA. The EBITA margin was higher than last year, also when adjusted for calendar effects.

Cash flow from operating activities totalled SEK 162 million, and net debt/EBITDA was 2.6 at the end of the quarter.

In the quarter, Infrastructure had strengthened profitability driven by improved commercial steering and efficiency enhancements as a result of the ongoing improvement programme. Energy had a strong quarter, with high growth and improved results, with good performance across all segments.

Process Industries met continued weak demand, and in line with previous quarters showed lower profitability compared to the previous year. There continues to be a lack of major investment projects in pulp and paper. The division is continuously adapting capacity and continues to strengthen the client offering to other segments.

Industrial & Digital Solutions and Management Consulting development were stable in the quarter but continue to be affected by weaker demand in certain segments.

We have secured a number of interesting new projects. AFRY will assist Queensland Hydro with a new pumped hydro project, which contributes to stability and reliability in Australia’s energy grid in the transition to renewable energy. After the end of the quarter, AFRY was appointed main engineering partner for SSAB’s fossil-free steel project in Sweden, where the assignment includes basic and detail engineering.

Despite a mixed market we have stability in our business and show increased profitability for the fourth consecutive quarter. AFRY is well-positioned in the global energy and industrial transition and is an attractive employer. Our focus remains to improve our profitability and develop our offering together with our clients.

For further information:

Jonas Gustavsson, President and CEO, +46 70 509 16 26
Bo Sandström, CFO, +46 70 545 87 87

Head Office: AFRY AB, SE-169 99 Stockholm, Sweden

Visiting address: Frösundaleden 2, Solna, Sweden

Tel: +46 10 505 00 00

www.afry.com

info@afry.com

Corp. ID no 556120-6474

This report has been subjected to scrutiny by the company’s auditors.

This information fulfils AFRY AB’s (publ) disclosure requirements under the provisions of the EU’s Market Abuse Regulation and the Swedish Securities Markets Act. This information was released, through the agency of the above-mentioned contact person, for publication on October 25 2024, at 07.00 CET.

All assumptions about the future that are made in this report are based on the best information available to the company at the time the report was written. As is the case with all assessments of the future, such assumptions are subject to risks and uncertainties, which may mean that the actual outcome differs from the anticipated result.

This is a translation of the Swedish original. The Swedish text is the binding version and shall prevail in the event of any discrepancies.

The full report including tables (pdf) is available for download.

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