Kitron reports strong order growth in a shifting market
Norwegian EMS provider Kitron posted fourth-quarter 2024 results demonstrating resilience in a fluctuating market.
The electronics manufacturer reported revenues of EUR 160.6 million for the fourth quarter, with an operating profit (EBIT) of EUR 11.8 million. The EBIT margin stood at 7.3%. While the fourth-quarter results reflect a softer market, they also demonstrate the effects of Kitron's restructuring efforts and an improving order backlog.
The company’s order backlog reached EUR 472 million at the end of the quarter, marking the third consecutive quarter of growth. This trend has continued into early 2025, with the backlog expanding further to EUR 505 million in January.
CEO confident in growth and profitability
Kitron CEO Peter Nilsson noted that the company managed challenges in the market through restructuring and operational adjustments.
“2024 was a year of decisive action and resilience. While we faced headwinds in some markets, our commitment to efficiency and strong execution led to successful restructuring efforts during the first quarter. Although de-stocking continues to affect some sub-sectors, we expect most of this to clear up by mid-2025,” Nilsson says in a press release.
He emphasised Kitron’s readiness for future growth, citing an optimised operational base, strategic contract wins, an aggressive M&A stance, and improving market conditions.
Kitron’s fourth-quarter revenue aligned with the guidance provided at its December Capital Markets Presentation. While revenue declined from EUR 199.1 million in Q4 2023, it increased from EUR 145.1 million in Q3 2024. The Defence/Aerospace segment was the best-performing sector.
The operating profit of EUR 11.8 million was slightly above the midpoint of December’s guidance but down from EUR 18.0 million in Q4 2023. Profit after tax came in at EUR 4.9 million, a decrease from EUR 12.3 million in the previous year’s corresponding quarter.
Looking ahead, Kitron reaffirmed its 2025 outlook, maintaining its revenue outlook of EUR 600-700 million with and operating profit in the range of EUR 42-63 million.
