Incap Group’s financial statements release for January – December 2024 (unaudited)
This release is a summary of Incap’s financial statements release for January – December 2024. The complete report is attached to this release as a pdf file and available on the company’s investor pages at www.incapcorp.com.
October – December 2024 highlights
- Revenue for the fourth quarter 2024 amounted to EUR 59.3 million (10–12/2023: EUR 42.4 million). Year-on-year increase was 39.7%. Excluding the impact of the company’s largest customer, revenue was 7% lower due to seasonal variations.
- Operating profit (EBIT) was EUR 8.6 million (EUR 3.7 million) or 14.4% of revenue (8.7 %). Year-on-year increase was 132.0%.
- Adjusted operating profit (EBIT) was EUR 8.9 million (EUR 4.4 million) or 14.9% of revenue (10.4%). Year-on-year increase was 100.6%.
- Net profit for the period was EUR 7.8 million (EUR 1.3 million).
January – December 2024 highlights
- Revenue amounted to EUR 230.1 million (1–12/2023: EUR 221.6 million). Year-on-year increase was 3.8%. Excluding the impact of the company’s largest customer, revenue grew 15.2%.
- Operating profit (EBIT) was EUR 29.2 million (EUR 28.2 million) or 12.7% of revenue (12.7%). Year-on-year increase was 3.4%.
- Adjusted operating profit (EBIT) was EUR 30.1 million (EUR 30.6 million) or 13.1% of revenue (13.8%). Year-on-year decrease was 1.5%.
- Net profit for the period was EUR 22.7 million (EUR 19.8 million).
- Earnings per share were EUR 0.77 (EUR 0.68).
- Incap is focusing on organic and inorganic growth and the company has a clear plan for potential acquisitions. Therefore, the Board of Directors of Incap Corporation proposes to the Annual General Meeting that no dividend be paid for the financial year 2024.
Unless otherwise stated, the comparison figures refer to the corresponding period in 2023. This business review is unaudited.
Key figures
| EUR million | 10–12 2024 | 10–12 2023 | Change | 7–9 2024 | Change | 1–12 2024 | 1–12 2023 | Change |
| Revenue | 59.3 | 42.4 | 39.7% | 61.8 | -4.0% | 230.1 | 221.6 | 3.8% |
| Non-recurring items | 0.2 | 0.2 | -14.5% | 0.1 | 100.2% | 0.4 | 1.1 | -65.9% |
| Operating profit (EBIT) | 8.6 | 3.7 | 132.0% | 7.9 | 8.6% | 29.2 | 28.2 | 3.4% |
| EBIT, % of revenue | 14.4% | 8.7% | 12.8% | 12.7% | 12.7% | |||
| Adjusted operating profit (EBIT)* | 8.9 | 4.4 | 100.6% | 8.1 | 9.4% | 30.1 | 30.6 | -1.5% |
| Adjusted EBIT*, % of revenue | 14.9% | 10.4% | 13.1% | 13.1% | 13.8% | |||
| Net profit for the period | 7.8 | 1.3 | 479.7% | 4.9 | 57.2% | 22.7 | 19.8 | 14.7% |
| Equity ratio | 63.8% | 60.6% | 63.2% | 63.8% | 60.6% | |||
| Net gearing | -30.8% | -7.7% | -8.4% | -30.8% | -7.7% |
*Adjusted operating profit (EBIT) is an alternative performance measure. Adjusted EBIT excludes non-recurring items and purchase price allocation amortisation. Adjusted EBIT provides comparable information between different financial years on operating profit.
Outlook for 2025
Incap estimates that the company’s revenue and operating profit (EBIT) in 2025 will be higher than in 2024.
The company expects a somewhat cautious start for the year 2025, as the market is anticipating the impact of the changes related to tariffs, taxes and geopolitical challenges, mostly linked to the new US administration.
The estimates are given provided that unexpected events impacting Incap’s business environment do not occur, for example, in the availability of components.
Otto Pukk, President and CEO of Incap Corporation
2024 was a successful year for Incap, with our performance aligning well with our plans. We have effectively navigated through the challenges of the previous years and have now reached a new normal with our largest customer's destocking exercise finalized. While many of our peers faced similar challenges in 2024 as we did in 2023, we had already overcome them and continued to grow our EBIT quarter-to-quarter, as anticipated. I want to extend my gratitude to our team for their dedication and hard work, which led to these great results.
Our revenue in 2024 was EUR 230.1 million, with the fourth quarter contributing EUR 59.3 million. Our 2024 results were driven by new customer acquisitions, increased sales to existing ones, and cross-selling opportunities from our acquisitions. The successful integration and strong performance of Incap US, along with Incap India's newest factory ramping up its production capacity, were significant contributors to the increase in revenue. We continuously improved our efficiency and invested in the latest technology, such as advanced SMT machinery in Slovakia and UK. We maintained good customer dialogue by for example organising events in Slovakia and Estonia, and our teams participated in various cooperation events, trade shows, and training sessions.
Our fourth quarter EBIT was EUR 8.6 million, representing 14.4% of revenue, and our full-year 2024 EBIT was EUR 29.2 million, or 12.7% of revenue. We achieved approximately 40% higher revenue and 132% higher profitability compared to the same period in previous year mainly thanks to the higher production volumes in Incap India. These figures highlight our successful operational model and agility. Furthermore, we have been focusing on our global cooperation and driving synergies between different units at Incap, to benefit our customers and enhance client engagement.
Throughout 2024, we continued to advance our commitment to sustainable business practices. We have prepared for CSRD reporting and are ready to comply with the new standards. In parallel, we updated our Sustainability Programme and set targets for 2025. Significant investments were made to support our goals, including the installation of solar panels at Incap India and improvements in energy efficiency across all units.
Looking ahead, we expect a somewhat cautious start for the year 2025, as the market is anticipating the impact of the changes related to tariffs, taxes and geopolitical challenges, mostly linked to the new US administration. However, we estimate that our revenue and operating profit for 2025 will be higher than in 2024. As a growth company with a strong long-term strategy, we are committed to both organic growth and growth through M&A. To achieve our organic growth targets, we have invested in our production facilities and the latest technologies, enabling us to serve modern industries and businesses effectively.
Despite the market uncertainties, we remain optimistic about the future while closely monitoring these developments and their impacts. We have not been significantly impacted by the slower economy in the Nordic electronics manufacturing industry, as we operate only one factory in the region and have a limited exposure to the Nordic market. Therefore, our diverse global customer base enables us to continue growing and we see significant opportunities in various geographies, which support our positive outlook for the future.
We are confident in our ability to continue delivering strong results and creating value for our shareholders. Our financial position remains solid, and we will keep pursuing opportunities that align with our goals.
Financial reporting in 2025
In 2025, Incap will publish the following financial reports:
• Business review for January–March 25 April 2025
• Half-year report for January–June 25 July 2025
• Business review for January–September 24 October 2025
Webcast
Incap will hold a webcast on Friday, 25 February 2025 at 11:00 a.m. Finnish time. The result will be presented by Otto Pukk, CEO, and Antti Pynnönen, CFO, Incap Corporation.
The live webcast can be followed at
https://events.teams.microsoft.com/event/bd618874-7e4b-4a79-b514-966a73b0ae57@abb82829-72d6-49fe-9638-f934f5da4760
During the webcast, questions can be asked through the webcast Q&A function at the address mentioned above. The recording of the broadcast will be available on the company's investor pages at https://incapcorp.com/reports-and-presentations/ later that day.
The event is targeted for analysts, portfolio managers and the media. Welcome!
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In Helsinki, 28 February 2025
INCAP CORPORATION
Board of Directors
Additional information:
Otto Pukk, President and CEO, tel. +372 508 0798
Distribution
Nasdaq Helsinki Ltd.
Principal media
www.incapcorp.com
Incap in brief
Incap Corporation is a trusted partner and full service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK, USA, and Hong Kong and employs approximately 2,500 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.