Alfa Laval AB

Latest Results (17.12.2024):

Order Intake Growth

In the second quarter of 2024, Alfa Laval AB reported an order intake of SEK 18.9 billion, marking an organic increase of 4 percent compared to the same period in the previous year. This growth reflects the company's strong performance in securing new business, particularly in the Marine division, which experienced a 30 percent increase in order intake driven by high demand in the ship contracting market.

Revenue and Sales Performance

Alfa Laval AB achieved net sales of SEK 17.5 billion in Q2 2024, representing an organic increase of 11 percent from the previous year. This growth was supported by a solid order book and improved short-cycle demand, with invoicing recovering well after a weaker first quarter. The Marine division contributed significantly to this performance with increased invoicing of its accumulated order backlog.

Earnings and Profitability

The company's adjusted EBITA for Q2 2024 increased by 23 percent to SEK 2.9 billion, corresponding to a margin of 16.7 percent, up from 15.0 percent in the previous year. This improvement was driven by a favorable revenue mix, including higher revenues from large project businesses, and a reduction in expenses relative to revenues. Earnings per share also rose to SEK 4.08, compared to SEK 3.63 in Q2 2023.

Cash Flow and Financial Health

Alfa Laval AB reported a strong cash flow from operating activities of SEK 2.6 billion in the second quarter of 2024, doubling the SEK 1.3 billion reported in the same period last year. This robust cash flow performance underscores the company's effective management of working capital and operational efficiency, contributing to its overall financial health and stability.

Outlook and Market Conditions

Looking ahead to the third quarter of 2024, Alfa Laval AB anticipates a somewhat lower level of demand compared to the second quarter. Despite this, the company remains optimistic about maintaining high market conditions, supported by a strong order book that is expected to sustain stable development well into 2025. The Energy division, however, may face continued challenges due to weakness in the HVAC market, although other applications and services are showing progress.