31.10.2024

Flat quarter for Alimak

Swedish international hoist, mastclimber and façade access group Alimak has reported a flat third quarter.

Year to date
Revenues for the nine months to the end of September were close to that achieved in the same period last year at SK5.28 billion ($494 million). Pre-tax profit increased almost six percent to SK563 ($52.7 million).

The individual divisions were as follows:
Construction: revenues were 6.5% lower at Sk1.22 billion ($114.6 million) with an operating profit of Sk184 million ($17.2 million) down 23%.
Façade: revenues came in 1.9% lower at SK1.46 billion ($136.6 million) with an operating profit of Sk150 million ($14 million)
Height Safety & Productivity Solutions: posted revenues of SK1.04 Billion ($97.6 million) a drop of around one percent, while operating profit increased 4.8% to SK195 million ($18.2 million)
Industrial: Sk1.11 billion ($103.2 million) up 3.0% with an operating profit 18.5 % higher at SK269 million ($25.1 million)
Wind: Sk527 million ($49.3 million) +3.7% with an operating profit of Sk104 million ($9.7 million) +8.1%

Third quarter

Total revenues for the third quarter were Sk1.7 billion ($156.1 million) +58% with a Pre-tax profit increased 93% to Sk189 million ($17 million).
Façade: revenues were SK479 million ($44.8 million) down 5.5% while operating profits jumped 38% to SK55 million ($5.1 million)
Construction: revenues were SK427 million ($39.9 million) down 3.1% with a profit of SK74 million ($6.9 million) down 10 %
Height Safety & Productivity Solutions: achieved revenues of Sk335 million ($29.4 million) with an operating profit of SK64 million ($5.9 million)
Industrial: Sk354 million ($33.1 million) +3.1% while the operating profit was SK81 million ($7.6 million) +12.5%
Wind: Sk180 million ($16.8 million)+3.7% with an operating profit of Sk35 million ($3.3 million) +6.1%

Chief executive Ole Kristian Jødahl said: In a continued challenging business environment, the group is delivering a solid performance. Order intake was slightly lower compared to last year at constant currency, mainly due to lower order intake in the Construction division. Due to high interest rates while the market remains challenging, especially in Europe. The Façade Access division delivered strong order intake in the quarter, supported by a larger infrastructure project in North America. Both the Industrial and Wind divisions continued their solid development and delivered strong order intake in the quarter.”

“Our focus on the aftermarket continues and we received increased orders for service, spare parts and refurbishments across all divisions. We continue to invest in product development, sales and marketing and our service capabilities. We have a strong financial position, and we are working relentlessly in all parts of the organisation to further accelerate our profitable growth agenda.”

“As interest rates are coming down, we should see the construction market improve during 2025. The funnel for acquisitions starts to fill with interesting candidates and we are in a financial position to act. All in all, I feel confident that our journey to New Heights have just started.”

Vertikal Comment

This is a decent result for Alimak as it begins to settle down following the massive transformational acquisition of Tractel at the end of 2022. Its strategy of diversification within the work at height market appears sound, but you have to wonder if its statement that it is ready for more acquisitions makes sense. Smaller bolt on acquisitions to add to its existing divisions would make good sense, anything like the Tractel deal would seem hasty, given that it still has much to extract from merging Tractel into the business.

Other than that, this looks like a decent result given the current climate.