Addnode Group (ANOD) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year with record earnings across all divisions, driven by investments in product development, digital solutions, and strategic acquisitions, despite significant changes in revenue recognition due to Autodesk's new agent model and reclassification of third-party agreements.

• All divisions delivered best-ever results, supported by strong organic growth, efficiency improvements, and a diversified customer base focused on sustainable digital solutions.

• Major acquisitions included CTC Software (USA), Congere (Sweden), Prime Aerostructures (Austria), and others, expanding geographic and sector presence.

Financial highlights

• Full-year 2024 net sales were SEK 7,757m, up 5% year-over-year, with EBITA up 35% to SEK 863m and margin at 11.1%; Q4 net sales fell 29% to SEK 1,484m due to the Autodesk model shift, but gross profit rose 11%.

• Full-year EPS rose 44% to SEK 3.02 per share; Q4 EPS improved by 23% to SEK 2.98.

• Cash flow from operations increased 45% to SEK 701m for the year.

• Proposed dividend of SEK 1.15 per share, up 15%.

• Gross margin improved to 54.1% (from 50.0%), and operating margin reached 7.7% (from 5.5%).

Outlook and guidance

• Underlying demand for digital solutions remains strong, especially in the public sector, but economic and geopolitical uncertainty, particularly in Germany, continues to impact large projects.

• Anticipation of contract renewals from three-year deals signed in 2022, with no major concerns about customer retention.

• Continued focus on organic growth, efficiency improvements, and acquisitions, supported by a strong financial position.

• The acquisition of Congere (Sweden) is expected to close in February 2025, further strengthening the Process Management division.

• No formal forecast issued; long-term strategy remains focused on organic and acquisition-driven growth.