Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the demand situation in Europe and EMEA during Q4 2024, and how did January 2025 compare? A: In Q4, demand was relatively stable, but December was slower than expected. January 2025 was more normal and expected, with underlying business remaining solid. However, larger orders are experiencing prolonged decision periods due to market turbulence. - Matthew Cusick, CFO
Q: Despite strong sales growth in Q4, the EBITDA margin remained flat. Can we expect margin improvements if volumes increase in 2025? A: The flat margin was due to a mix of business, including more solutions with lower margins and costs associated with moving to new facilities. If volumes increase, we expect margin improvements due to better operational efficiency and synergies from consolidated sites. - Matthew Cusick, CFO
Q: The Duct and Filter segment's EBITA margin declined in Q4. Can you explain this and the margin profile for large battery orders? A: The margin decline was mainly in ducting, with large battery orders having lower percentage margins but contributing positively to the bottom line. Investments in production efficiency are expected to improve margins. - Matthew Cusick, CFO
Q: Order intake was lower at the start of 2025 compared to 2024. How will this affect sales in the first half of 2025, particularly in Process Technology? A: The majority of the backlog reduction is in Process Technology. While there is a strong pipeline, market volatility may delay decisions. Sales in the first half of 2025 may see lower contributions from fibre and textile, but the base business remains strong. - Matthew Cusick, CFO
Q: With increased focus on EV batteries, are you facing price pressure or competition in this sector? A: We haven't seen significant downturns or increased competition in the EV battery sector. Our strong performance in the US has positioned us as a reliable partner for large installations, which may benefit other areas like smelters and foundries. - Sven Kristensson, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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