Caverion Corporation Financial Statement Release 8 February 2024 at 8.00 EET

HELSINKI, Feb. 8, 2024 /PRNewswire/ -- Caverion Corporation's Financial Statement Release for 1 January - 31 December 2023: Eventful year with all-time high results

1 January - 31 December 2023

The public tender offer by Triton/Crayfish BidCo Oy for all shares of Caverion Corporation was completed in November 2023 and redemption proceedings for the remaining minority shares were initiated.
Order backlog: EUR 1,908.7 (1,943.3) million, down by 1.8 percent. Services backlog increased by 0.1 percent. Projects backlog decreased by 4.3 percent.
Revenue: EUR 2,490.9 (2,352.1) million, up by 5.9 percent. Organic growth was 5.6 (8.6) percent. Services business revenue increased by 3.2 percent. Projects business revenue increased by 11.3 percent.
Adjusted EBITA: EUR 123.7 (105.8) million, or 5.0 (4.5) percent of revenue, up by 16.9 percent. The majority of the adjustments were related to the public tender offer process.
EBITA: EUR 93.2 (86.1) million, or 3.7 (3.7) percent of revenue, up by 8.2 percent.
Operating profit: EUR 77.2 (69.9) million, or 3.1 (3.0) percent of revenue, up by 10.4 percent.
Operating cash flow before financial and tax items: EUR 165.9 (144.3) million, up by 14.9 percent.
Cash conversion (LTM): 107.5 (100.6) percent.
Earnings per share, undiluted: EUR 0.24 (0.32) per share. Earnings per share adjusted with items related to the tender offer process was EUR 0.52 (0.34) per share.
Net debt/Adjusted EBITDA: 1.3x (1.2x).
Acquisitions: Caverion closed five acquisitions in January-December 2023, total annual revenue EUR 60.4 million.
Board's dividend proposal for the AGM on 12 June 2024: No dividend will be paid for the year 2023.

1 October - 31 December 2023

Revenue: EUR 670.0 (682.9) million, down by 1.9 percent. Organic growth was -0.9 (14.9) percent. Services business revenue decreased by 4.9 percent. Projects business revenue increased by 4.7 percent.
Adjusted EBITA: EUR 44.0 (38.7) million, or 6.6 (5.7) percent of revenue, up by 13.8 percent.
EBITA: EUR 28.7 (24.6) million, or 4.3 (3.6) percent of revenue, up by 16.6 percent.
Operating profit: EUR 24.9 (20.0) million, or 3.7 (2.9) percent of revenue, up by 24.9 percent.
Operating cash flow before financial and tax items: EUR 132.3 (106.9) million.
Earnings per share, undiluted: EUR 0.00 (0.09) per share. Earnings per share adjusted with items related to the tender offer process was EUR 0.21 (0.11) per share.

Unless otherwise noted the figures in brackets refer to the corresponding period in the previous year.

KEY FIGURES


            
              
                EUR million                10-12/23 10-12/22  Change   1-12/23   1-12/22    Change



            Revenue                                               670.0     682.9   -1.9 %   2,490.9    2,352.1      5.9 %


    Organic growth, %                                             -0.9      14.9                5.6        8.6



            Adjusted EBITDA                                        60.0      53.8   11.5 %     184.7      163.0     13.3 %


    Adjusted EBITDA margin, %                                      9.0       7.9                7.4        6.9



            EBITDA                                                 44.8      39.8   12.6 %     154.3      143.4      7.6 %


    EBITDA margin, %                                               6.7       5.8                6.2        6.1



            Adjusted EBITA                                         44.0      38.7   13.8 %     123.7      105.8     16.9 %


    Adjusted EBITA margin, %                                       6.6       5.7                5.0        4.5



            EBITA                                                  28.7      24.6   16.6 %      93.2       86.1      8.2 %


    EBITA margin, %                                                4.3       3.6                3.7        3.7



            Operating profit                                       24.9      20.0   24.9 %      77.2       69.9     10.4 %


    Operating profit margin, %                                     3.7       2.9                3.1        3.0



            Result for the period                                   0.4      13.1  -96.9 %      33.1       46.2    -28.5 %



            Earnings per share, undiluted, EUR                     0.00      0.09  -96.9 %      0.24       0.32    -26.9 %



            Operating cash flow before financial and tax items    132.3     106.9   23.8 %     165.9      144.3     14.9 %



            Order backlog                                                                  1,908.7    1,943.3     -1.8 %


    Cash conversion (LTM), %                                                                107.5      100.6



            Working capital                                                                 -170.8     -141.4    -20.8 %



            Interest-bearing net debt                                                        236.8      200.9     17.9 %



            Net debt/Adjusted EBITDA                                                           1.3        1.2


    Gearing, %                                                                              134.8       89.1


    Equity ratio, %                                                                          15.6       19.8



            Personnel, end of period                                                        14,815     14,490      2.2 %

JACOB GÖTZSCHE, PRESIDENT AND CEO

"The year 2023 was another positive, and eventful, year for Caverion, marked by increased revenue and solid profitability. Both our revenue and adjusted EBITA reached record-high levels. Our revenue increased to EUR 2,490.9 (2,352.1) million and adjusted EBITA to EUR 123.7 (105.8) million, which represents a margin of 5.0%. I am very pleased with this achievement in these market conditions, characterised by high interest rates, low investment activity, increased geopolitical uncertainty and a turbulent construction market as a whole.

In the fourth quarter, revenue was slightly behind last year at EUR 670.0 (682.9) million due to a negative currency impact. In 2023, organic revenue growth was 5.6% whereas acquisitions contributed by 4.1%. During the year, we also saw a significant currency impact due to the devaluation of the Swedish and Norwegian currencies. The negative revenue contribution of the currency impact was as much as EUR 20 million in the fourth quarter and EUR 87 million during the year. Measured in local currencies, revenue increased in 2023 in all divisions except Industry as well as in both Service and Project businesses. We have executed several sizable projects during the year, including substations and power lines for the main grid in Finland, a new airport terminal in Frankfurt, Germany, a university hospital in Northern Finland as well as a recycling plant for car batteries in Sweden. These types of projects are not dependent on the general market sentiment and demonstrate the advantage in having broad capabilities and know-how, as we have in Caverion.

In the fourth quarter, adjusted EBITA improved by 13.8% to EUR 44.0 million (38.7), 6.6% (5.7) of revenue. Our adjusted EBITA for the full year increased by 16.9% compared to the previous year and by 21.9% when excluding the negative impact of the currency devaluation (about EUR 4.4 million). The main contributor to the improvement was the continued high performance in Services as well as the healthy project mix and profitable growth in the Projects business unit. While we have been quite resilient to the high inflation and high interest rates, we are of course not immune to the negative market sentiment. Even if the challenges in the residential construction market do not have a significant impact on our business directly, we also do experience the indirect impact through more competition and price pressure. Our operating cash flow during the year improved to EUR 165.9 (144.3) million.

Order backlog at the end the year was stable at EUR 1,908.7 (1,943.3) million. In these market conditions, this gives us confidence of continued good performance also in 2024. Despite the challenges of the current operating environment, global trends drive long-term demand in our business.

In 2023, we made good progress in the execution of our Sustainable Growth strategy. We strengthened our service capacity and expertise by completing five acquisitions in Finland, Norway and Sweden. As outlined in our strategy, we will continue screening complementing, high-quality companies also going forward. Overall, we are in a good position to meet the demands of our customers from both geographical and capability point of view.

Sustainability and energy efficiency in the built environment are major priorities for our customers and hence also strategic focus and growth drivers for us at Caverion. Our sustainability work focuses on four key targets: caring for our people, ensuring sustainable value chain, increasing our carbon handprint as well as decreasing our own carbon footprint. The year 2023 has been a year of preparation for the requirements of the upcoming EU legislation concerning sustainability reporting. During 2023, we defined, among other actions, a unified carbon handprint calculation model, calculated our total greenhouse gas Scope 1-3 emissions, and expect our Science Based Targets to be validated in 2024.

The year 2023 also marks, for now, the last full year for Caverion Corporation as a publicly listed company. We are pleased to see the long tender offer process, which started already back in 2022, now coming to an end. Furthermore, we are happy that with Triton we will have an owner who has vast experience in our sector and who will enable us to accelerate the execution of our strategy. The ownership change in itself has no impact in our daily business and at Caverion we continue to focus on serving our customers as before.

I wish to thank our customers, business partners, shareholders and the Caverion employees in particular for their contribution to a successful 2023 and look forward to continued good collaboration and success in 2024!"

MARKET OUTLOOK FOR 2024

The digitalisation and sustainability megatrends are in many ways favourable to Caverion and they are believed to support demand for the company's offering in 2024 and going forward. The increased energy efficiency requirements, and the increasing digitalisation, automation and technology requirements in the built environment remain strong, together with the urbanisation megatrend. Increasing awareness of sustainability is supported by both EU-driven regulations and national legislation setting higher targets and actions for energy efficiency and carbon-neutrality. The continued focus on energy efficiency and CO2 reduction targets and projects continues to support activity and business volume in Caverion's operating environment.

Caverion will no longer publish result guidance due to the previously announced intention of a controlling shareholder, Crayfish BidCo Oy, to cause Caverion's shares to be delisted from Nasdaq Helsinki Ltd as soon as reasonably practicable.

FINANCIAL AND SUSTAINABILITY TARGETS

Caverion updated its financial targets in connection with publishing its updated strategy on 9 May 2022. Sustainability targets remained unchanged.


     
     
     F
                
            
     inancial targets until the end of 2025                                                                         1-12/2023



     
     
     Cash conversion (LTM)                                                          Operating cash flow before financial and tax items / EBITDA > 100% 107.5 %



     
     
     Profitability                                                   
     Adjusted EBITA > 5.5% of revenue                                                   5.0 %



     
     
     Organic revenue growth                                          
     3−4% p.a. over the strategy period                                                 5.6 %



     
     
     M&A revenue growth                                              
     2−3% p.a. over the strategy period                                                 4.1 %



     
     
     Debt leverage                                                   
     Net debt/LTM Adjusted EBITDA < 2.5x                                                 1.3x



     
     
     Dividend policy                                                   Distribute at least 50% of the result for the year after taxes, however, taking
                                                                             leverage level into account                                                         0%*

* Calculated as Dividend per earnings (%). The Board of Directors proposes to the Annual General Meeting to be held on 12 June 2024 that no dividend will be paid for the year 2023.


     
                
                  Sustainability targets            2025   2023    2022



     
                
                  Decreasing our footprint



     Total carbon footprint defined and measured                  100 % 100 %  100 %



     
                
                  Increasing our handprint



     Carbon handprint over footprint (Scope 1−2)                     5x   >3x    >3x



     Our offering has a defined carbon handprint                  100 %  25 %   25 %



     
                
                  Caring for our people



     Lost Time Injury Frequency Rate (LTIFR)                         <2   4.1     4.0



     Share of female employees                                     15 %  11 %   11 %



     Our employees trained in sustainability                      100 %  97 %   30 %



     
                
                  Ensuring sustainable value chain



     Supplier Code of Conduct sign-off rate                        >90% 80 %   74 %



     Our tender requests include sustainability criteria          100 %

FINANCIAL INFORMATION TO BE PUBLISHED IN 2024

The Annual Review 2023 including the financial statements will be published during week 9/2024, at the latest.

Caverion Corporation changed its financial reporting practice and will only publish a half-year financial report and a financial statement release in the future. The publication dates and financial reports are available at Caverion's website www.caverion.com/investors.

CAVERION CORPORATION

Distribution: Nasdaq Helsinki, principal media, www.caverion.com

For further information, please contact:

Mikko Kettunen, CFO, tel. +358 50 347 7462, mikko.kettunen@caverion.com
Noora Koikkalainen, Head of Marketing, Communications and IR, tel. +358 50 562 6552, noora.koikkalainen@caverion.com

The following files are available for download:


     
     https://mb.cision.com/Main/14078/3924108/2590540.pdf Financial Statement Release
                                                              2023

View original content:https://www.prnewswire.co.uk/news-releases/caverion-corporations-financial-statement-release-for-1-january--31-december-2023-eventful-year-with-all-time-high-results-302057136.html

Tags

More Like This

Caverion Corporation's Interim Report for 1 January - 30 September 2023: Solid profitability in an uncertain operating environment

Caverion Corporation's Annual Review 2023 is published

Publishing of Caverion's Interim Report for January-September 2023 on 3 November 2023

Change in Caverion Corporation's financial reporting practice and Annual General Meeting 2024 date

Caverion Corporation publishes condensed unaudited consolidated interim financial statements as of and for the three months ended 31 March 2024

Caverion publishes certain key figures following the announcement of an offering of senior secured notes by Caverion's indirect parent company

Preliminary result of Crayfish BidCo Oy's voluntary recommended public cash tender offer for all shares in Caverion Corporation

Decisions of Caverion Corporation's Annual General Meeting and constitutive meeting of the Board of Directors