Year-end report 1 January – 31 December 2024

"In the fourth quarter of 2024 we saw continued strong performance in the US with good margin development and cash generation. In Germany and Kazakhstan, we continued to reduce our balance sheet position to create a robust platform for profitable growth going forward.

The US market sentiment is generally good. Customers are optimistic and expect activity in construction and natural resource extraction to increase. Our total revenue in the US in the fourth quarter was SEK 720m with an operating profit of SEK 65m, implying an operating margin of 9.0%. Machines sales overall grew by 22% while service and parts sales were stable Inventory and rental fleet at the end of 2024 were higher than in 2023. This is in line with our strategy to take market share in articulated haulers and excavators. Over time, we see potential to grow market share and expand the machine population for our service and parts business.

In Germany, the market for trucks declined by 14% in the quarter. Despite weak demand, OEMs and dealers continued to push trucks into the market, resulting in further price pressure. Our deliveries of new trucks, in units, almost doubled during the quarter on a combination of continued efforts to clear out old stock and strong order intake of new trucks in the previous quarter. We gained significant market share and decreased stock, but at the expense of low or negative margins. Given the current market conditions, we recognized impairment of another SEK 13m on our remaining stock. Service and parts sales were stable. Meanwhile, our electric rental business continues to develop well, and our cost reduction program continues to show results. Revenue in Germany increased by 1% to SEK 559m. The operating result, including impairment, was SEK -41m. While this is disappointing, a leaner organization and a balanced inventory position, make us more resilient and better positioned for 2025.

In Kazakhstan, we also gave up margins to clear out old inventory and recognized an impairment of SEK 4m. In Kazakhstan we are now also in a stronger position to capture opportunities in a growing market. Total revenue decreased to SEK 33m, or 2.5% of the Group’s turnover. The operating result was SEK -10m.

For the Group, revenue increased by 43% to SEK 1,312m. The operating result amounted to SEK 2m, or SEK 19m excluding the effect of the impairment of inventory. Given the negative net result for 2024, the Board recommends that no dividend is paid.

We are optimistic about our expansion into the US and the business opportunities we see. Demand is supported by a dynamic economy and a significant need to upgrade the country’s infrastructure. The German economy remains weak. We have cut costs to make our business more resilient. We are confident that demand in the service and parts business will remain strong and are optimistic about the long-term potential in the German market."