Cargotec: Seventh quarter in a row with good and stable results

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Cargotec’s interim report January–September 2024: Seventh quarter in a row with good and stable results

  • Orders received increased in Hiab and MacGregor
  • Strong profitability and cash flow
  • Sales process of MacGregor progressing according to plan
  • Outlook specified for Hiab and MacGregor

Unless otherwise stated, the financial information in this report concerns Cargotec’s continuing operations.

July–September 2024 in brief: Orders received increased

  • Orders received increased by 14 percent and totalled EUR 597 (522) million.
  • Order book amounted to EUR 1,691 (31 Dec 2023: 1,788) million at the end of the period.
  • Sales decreased by 1 percent and totalled EUR 590 (598) million.
  • Service sales remained at previous year’s level and totalled EUR 197 (197) million.
  • Service sales represented 33 (33) percent of consolidated sales.
  • Eco portfolio sales decreased by 10 percent and totalled EUR 172 (192) million.
  • Eco portfolio sales represented 29 (32) percent of consolidated sales.
  • Operating profit was EUR 67 (77) million, representing 11.4 (12.8) percent of sales. The operating profit includes items affecting comparability worth EUR -2 (16) million.
  • Comparable operating profit increased by 14 percent and amounted to EUR 70 (61) million, representing 11.8 (10.2) percent of sales.
  • Profit for the period amounted to EUR 51 (62) million.
  • Basic earnings per share was EUR 0.79 (0.97).
  • Cash flow from operations before finance items and taxes totalled EUR 148 (184) million.1

January–September 2024 in brief: Comparable operating profit increased

  • Orders received increased by 10 percent and totalled EUR 1,833 (1,672) million.
  • Order book amounted to EUR 1,691 (31 Dec 2023: 1,788) million at the end of the period.
  • Sales remained at previous year’s level and totalled EUR 1,833 (1,835) million.
  • Service sales increased by 3 percent and totalled EUR 616 (598) million.
  • Service sales represented 34 (33) percent of consolidated sales.
  • Eco portfolio sales decreased by 10 percent and totalled EUR 535 (594) million.
  • Eco portfolio sales represented 29 (32) percent of consolidated sales.
  • Operating profit was EUR 189 (197) million, representing 10.3 (10.7) percent of sales. The operating profit includes items affecting comparability worth EUR -34 (6) million, which were mainly related to MacGregor’s settlement with a monopile installation vessel project customer.
  • Comparable operating profit increased by 17 percent and amounted to EUR 223 (191) million, representing 12.2 (10.4) percent of sales.
  • Profit for the period amounted to EUR 129 (141) million.
  • Basic earnings per share was EUR 2.00 (2.19).
  • Cash flow from operations before finance items and taxes totalled EUR 411 (252) million.1

Outlook for 2024 specified

Cargotec estimates2 Hiab’s comparable operating profit margin in 2024 to be above 14.0 percent and MacGregor’s comparable operating profit in 2024 to be above EUR 65 million.

In its outlook specified on 8 August 2024, Cargotec estimated Hiab’s comparable operating profit margin in 2024 to be above 13.5 percent and MacGregor’s comparable operating profit in 2024 to be above EUR 55 million.


Cargotec updated its reporting structure due to the partial demerger starting from the second quarter 2024

The completion of the partial demerger of Cargotec Corporation and the incorporation of a new Kalmar Corporation was registered in the Finnish Trade Register on 30 June 2024. As a result of the partial demerger, Cargotec updated its segment reporting. The new reporting structure was used in the half-year financial report January–June 2024 for the first time. From 30 June 2024 onwards Cargotec has two reporting segments, Hiab and MacGregor. The Kalmar segment was removed.

To provide a basis for comparison, Cargotec published on 3 July 2024 its reclassified financial information of reportable segments and Corporate administration and support functions for all quarters of 2023 and the first quarter of 2024 separately, as well as for the full year 2023. Corporate administration and support functions now reflect continuing operations while Hiab and MacGregor financial information remained unchanged.

The reclassified financial information is unaudited.

Cargotec’s key figures

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Orders received597522        14%1,8331,672        10%2,282
Service orders received193183        6%602592        2%787
Order book, end of period1,6911,894        -11%1,6911,894        -11%1,788
Sales590598        -1%1,8331,835        0%2,519
Service sales197197        0%616598        3%806
Service sales, % of sales        33%        33%         34%        33%         32%
Eco portfolio sales172192        -10%535594        -10%797
Eco portfolio sales, % of sales        29%        32%         29%        32%         32%
Operating profit67.176.7        -12%188.8197.0        -4%236.0
Operating profit, %        11.4%        12.8%         10.3%        10.7%         9.4%
Comparable operating profit69.660.9        14%222.9191.2        17%236.7
Comparable operating profit, %        11.8%        10.2%         12.2%        10.4%         9.4%
Profit before taxes64.373.9        -13%183.9183.3        0%219.5
Profit for the period50.962.2        -18%129.1140.7        -8%162.4
Basic earnings per share, EUR0.790.97        -18%2.002.19        -8%2.49
Personnel, end of period*6,0906,600        -8%6,0906,600        -8%6,400

*Comparative information has been adjusted.

Cargotec’s key figures*

Among the below presented key figures, statement of income related components and operating cash flow before financing items and taxes include both continuing and discontinued operations in all presented periods. The key figures including components from the balance sheet (interest-bearing net debt at the end of the period, gearing, return on capital employed) include discontinued operations in all presented periods, except months starting from June 2024.

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Cash flow from operations before finance items and taxes147.6184.4        -20%410.5252.1        63%544
Interest-bearing net debt, end of period-64406< -100%-64406< -100%179
Gearing, %        -5.3%        24.2%         -5.3%        24.2%         10.2%
Interest-bearing net debt / EBITDA**-0.10.7 -0.10.7 0.3
Return on capital employed (ROCE), last 12 months, %        18.9%        14.8%         18.9%        14.8%         19.9%

*Due to Kalmar business area’s classification as discontinued operations, suspended depreciation and amortisation starting from 1 February 2024 had a positive EUR 17.9 million impact on the presented result figures before taxes and EUR 13.4 million positive impact on the result after taxes. Comparative information is not restated accordingly.

**Last 12 months’ EBITDA

Cargotec’s President and CEO Casimir Lindholm: Seventh quarter in a row with good and stable results

The third quarter was the seventh quarter in a row with good and stable results for Cargotec. Operational performance remained solid and there were no significant changes in the market environment which remained mixed. Expectations on lower interest rates and uncertainty in some of Hiab’s key geographies and industries continued to delay customer decision making. On the other hand, MacGregor continued to benefit from the strong ship building cycle.

Taking a look at our financial performance, Cargotec’s orders received in the third quarter increased, driven by both businesses and totalled EUR 597 million. Cargotec’s consolidated order book declined from the comparison period as Hiab’s order book has gradually been returning to a more normal level. Sales amounted to EUR 590 million. The decrease in Hiab’s sales was offset by increased sales in MacGregor. Our comparable operating profit increased by 14 percent to EUR 70 million or 11.8 percent of sales. Once again, cash flow from operations before finance items and taxes was very strong, driven by good profitability and reduction in net working capital and totalled EUR 148 million. For the first time in Cargotec’s history, we have a net cash position.

In Hiab, the demand has remained on a stable level since the fourth quarter of 2022. Delayed decision making continued due to expectations on lower interest rates and market uncertainty. However, we were able to book some larger key account orders which were postponed from the second quarter, boosting Hiab’s orders received to increase by 16 percent from the comparison period to EUR 361 million. Hiab’s sales decreased by 8 percent to EUR 388 million. Share of service sales increased to 29 percent of Hiab’s sales and amounted to EUR 112 million. Despite lower sales, Hiab’s profitability remained on a good level and the comparable operating profit amounted to EUR 59 million, corresponding to 15.3 percent of sales. Hiab’s comparable operating profit was supported by successful management of inflationary pressures as well as sourcing and supply chain actions.

In MacGregor, the strong performance in merchant and service businesses continued. Orders received increased by 12 percent to EUR 236 million, driven by continued strong momentum in the ship building market. MacGregor’s order book continued to increase and amounted to EUR 1,055 million. The order book gives good visibility for the coming years as, due to the limited shipyard capacity, approximately 40 percent of the order book is scheduled to be delivered in 2026 or later. MacGregor’s sales increased by 13 percent to EUR 203 million, driven by merchant business. Due to higher sales and supported by lower losses from the offshore projects, MacGregor’s comparable operating profit improved yet again against the comparison period, reaching EUR 20 million or 9.6 percent of sales.


Following the strong third quarter performance in both divisions, we specified our outlook for 2024. Cargotec now estimates Hiab’s comparable operating profit margin in 2024 to be above 14.0 percent and MacGregor’s comparable operating profit in 2024 to be above EUR 65 million. In the outlook specified in August, we estimated Hiab’s comparable operating margin to be above 13.5 percent and MacGregor’s comparable operating profit to be above EUR 55 million.

We announced in May that we had started the sales process of MacGregor, aiming to find a solution in 2024. The process has progressed according to plan and after good developments in October we target signing the deal before the year end. We are currently carving out MacGregor from Cargotec and building standalone capabilities for the business. We have also continued to prepare Hiab for its standalone future. During the third quarter, we also successfully completed the final part of the Kalmar separation in just 16 months from the demerger announcement”. 

Reporting segments’ key figures

Orders received

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Hiab361311        16%1,0951,065        3%1,466
MacGregor236211        12%738606        22%816
Internal orders00 00 0
Total597522        14%1,8331,672        10%2,282

Order book

MEUR30 Sep 202431 Dec 2023Change
Hiab636799        -20%
MacGregor1,055988        7%
Internal order book01 
Total1,6911,788        -5%

Sales

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Hiab388420        -8%1,2351,336        -8%1,787
MacGregor203179        13%598499        20%733
Internal sales00 00 0
Total590598        -1%1,8331,835        0%2,519


Operating profit

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Hiab59.361.5        -4%196.8204.4        -4%252.1
MacGregor19.424.3        -20%21.825.2        -13%31.8
Corporate administration and support functions-11.6-9.2        -27%-29.8-32.6        9%-48.0
Total67.176.7        -12%188.8197.0        -4%236.0

Comparable operating profit

MEURQ3/24Q3/23ChangeQ1–Q3/24Q1–Q3/23Change2023
Hiab59.361.5        -4%196.8204.3        -4%252.1
MacGregor19.58.5> 100%53.019.5> 100%32.6
Corporate administration and support functions-9.3-9.2        -1%-26.9-32.6        17%-48.0
Total69.660.9        14%222.9191.2        17%236.7