Fasadgruppen, a leading construction company in Sweden, recently reported a decrease in revenue, a shift from profit to loss, and no proposed dividend for 2024. This unexpected turn of events has left many investors and industry analysts puzzled and concerned about the future prospects of the company.
CEO Martin Jacobsson described the fourth quarter as a period of “two extremes,” with weak performance in the Swedish operations, especially in December, while the newly acquired subsidiary Clear Line, along with a few other Nordic subsidiaries, performed strongly. Unfortunately, the overall performance in Sweden overshadowed the positive results in other regions, leading to a disappointing fourth quarter and full year.
Despite an increase in the order backlog for Swedish companies in Q4 compared to Q3, there was an organic decrease of 8%. Looking ahead to 2025, the company’s goal is to reduce net debt relative to adjusted EBITDA. Jacobsson outlined a new strategy for 2025, focusing on a flatter organizational structure with more efficient governance to strengthen profitability in existing operations over new acquisitions. The aim is to reduce net debt relative to adjusted EBITDA, which currently stands at around 3.3x on a pro forma basis, back to the target of under 2.5x.
One of the most significant changes announced by Fasadgruppen is the revised dividend policy. In addition to not proposing a dividend for 2024, the company will no longer provide an annual dividend. The rationale behind this decision is to shift the focus towards lower net debt and growth through acquisitions, which is expected to create more value for shareholders in the long run.
Financial Highlights for Fasadgruppen in Q4-2024:
| Fasadgruppen, Mkr | Q4-2024 | Q4-2023 | Change |
| Net Revenue | 1,375.6 | 1,397.5 | -1.6% |
| Organic Sales Growth, % | -15.6 | -2.0 | |
| EBITDA | 49.9 | 132.1 | -62.2% |
| EBITDA Margin | 3.6% | 9.5% | |
| Adjusted EBITDA | 88.0 | 127.9 | -31.2% |
| Adjusted EBITDA Margin | 6.4% | 9.2% | |
| Profit Before Tax | -47.3 | 106.0 | |
| Net Profit | -50.0 | 73.5 | |
| Earnings Per Share, SEK | -0.98 | 1.48 | |
| Cash Flow from Operating Activities | 154.6 | 265.8 | -41.8% |
| Annual Dividend per Share, SEK | 0 | 1.70 |
This shift in strategy and performance highlights the challenges and opportunities facing Fasadgruppen in the coming years. As the company navigates through a turbulent market environment and strives to improve its financial position, investors and stakeholders will be closely watching to see how these changes unfold and whether they lead to a sustainable and profitable future for the company.