Metso Corporation: Metso's Interim Report for January-September 2024

Figures in brackets refer to the corresponding period in 2023, unless otherwise stated.

Third quarter 2024 in brief

• Overall market activity remained at the previous quarter's level; a few large mining projects were initiated 
• Orders received increased 3% to EUR 1,226 million (EUR 1,191 million); equipment +9% and services -1%
• Sales declined 12% to EUR 1,160 million (EUR 1,319 million); equipment -20% and services -5%
• Adjusted EBITA was EUR 196 million, or 16.9% of sales (EUR 213 million, or 16.1%)
• Operating profit was EUR 178 million, or 15.3% of sales (EUR 189 million, or 14.3%)
• Discontinued operations' result included a one-off charge of EUR 250 million related to the termination of the waste-to-energy business
• Cash flow from operations was EUR -19 million (EUR 161 million), including EUR 275 million negative impact related to the waste-to-energy business

January-September 2024 in brief

• Orders received declined 7% to EUR 3,749 million (EUR 4,020 million)
• Sales declined 11% to EUR 3,591 million (EUR 4,049 million)
• Adjusted EBITA declined 9% to EUR 601 million, or 16.7% of sales (EUR 662 million, or 16.4%)
• Operating profit declined to EUR 561 million, or 15.6% of sales (EUR 604 million, or 14.9%)
• For continuing operations, earnings per share were EUR 0.46 (EUR 0.49). Earnings per share were EUR 0.21 (EUR 0.49), including the one-off impact from discontinued operations.
• Cash flow from operations was EUR 290 million (EUR 333 million), including the one-off EUR 275 million negative impact.

President and CEO Pekka Vauramo:

The third quarter saw market activity similar to that of the second quarter. Lower order intake in previous periods resulted in a decline in the Group's sales. However, our dedicated efforts to improve profitability over the past years are reflected in the resilient adjusted EBITA margin of 16.9 percent.

During the quarter, a couple of large mining projects progressed as expected, and we booked approximately EUR 170 million worth of new equipment orders related to these projects. As a result, orders in the Minerals segment grew by 5 percent, and total orders for the Group increased by 3 percent compared to the same period last year. The Minerals segment's services orders also grew when excluding the impact of currency fluctuations. In the Aggregates segment, demand remained subdued, and orders were slightly below the comparison period.

Sales in the Aggregates segment decreased by eight percent from the comparison period. Nevertheless, the segment's adjusted EBITA margin remained robust at 16.1 percent. In the Minerals segment, sales decreased by 13 percent from the previous year, while the segment's profitability remained strong, with an adjusted EBITA margin rising to 18.3 percent of sales.

During the quarter, we continued to be active with bolt-on acquisitions, signing agreements to acquire Jindex, as well as Diamond Z and Screen Machine Industries. Jindex is a valve and process flow control specialist and it will further strengthen our capacity to provide more comprehensive slurry handling solutions for the mining industry. The acquisition of Diamond Z enhances our mobile aggregates equipment offerings for the infrastructure recycling markets, while Screen Machine Industries expands our portfolio in the North American mobile crushing and screening markets. In early October, we also agreed to acquire the remaining shares of our long-term partner, Swiss Tower Mills Minerals AG (STM), in which we previously held a 15% minority stake. This acquisition represents an investment in energy-efficient comminution technology; vertical grinding mill solutions is a segment with promising future trends.

Moving forward, we expect market activity to remain stable in the short term. In Aggregates, the North American mobile equipment market continues to be challenging. In the Minerals segment, we expect the activity related to copper to gradually improve.

As this is my final earnings report at Metso, it's time to thank all my colleagues, our customers, and shareholders for the excellent cooperation and support over the past six years. I am confident that this great company will continue to develop and reach new heights. I wish my successor Sami and all Metsonites continued success and prosperity in the years to come.
Market outlook

Metso expects that the market activity in both Minerals and Aggregates will remain at the current level.

In its previously published outlook, Metso expected the market activity in both Minerals and Aggregates to remain at the current level.

According to the company's disclosure policy, Metso's market outlook describes the expected sequential development of market activity, adjusting for seasonality, during the following six-month period using three categories: improve, remain at the current level, or decline.
Key figures

EUR million Q3/202 Q3/202 Change Q1-Q3/2 Q1-Q3/2 Change 2023
4 3 % 024 023 %
Orders received 1,226 1,191 3 3,749 4,020 -7 5,252
Orders received by 668 677 -1 2,184 2,274 -4 2,955
services business
% of orders received 54 57 - 58 57 - 56
Order backlog 3,007 3,179 -5 2,951
Sales 1,160 1,319 -12 3,591 4,049 -11 5,390
Sales by services 674 710 -5 2,092 2,133 -2 2,891
business
% of sales 58 54 - 58 53 - 54
Adjusted EBITA 196 213 -8 601 662 -9 887
% of sales 16.9 16.1 - 16.7 16.4 - 16.5
Operating profit 178 189 -6 561 604 -7 805
% of sales 15.3 14.3 - 15.6 14.9 - 14.9
Earnings per share, 0.15 0.14 7 0.46 0.49 -6 0.65
continuing operations,
EUR
Cash flow from -19 161 - 290 333 -13 550
operations
Gearing, % 47.2 32.6 - 47.2 32.6 - 33.8
Personnel at end of 17,061 17,069 0 17,134
period

Audiocast and conference call details  

An audiocast and a conference call for analysts and investors will be arranged today at 1:00 p.m. EEST.

The audiocast can be followedat the company's website (https://www.metso.com/corporate/investors/financials/interim-review/). A recording and a transcript will be available at the same webpage after the event has finished.
The teleconference can be accessed by registering on the link below.

https://palvelu.flik.fi/teleconference/?id=50048708

The complete Interim Report for January-September 2024 is available as an attachment to this release.

Further information, please contact:  
Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253, email: juha.rouhiainen(a)metso.com (juha.rouhiainen@metso.com)  

Distribution: 

Nasdaq Helsinki Ltd

Main media

www.metso.com

Metso is a frontrunner in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. We improve our customers' energy and water efficiency, increase their productivity, and reduce environmental risks with our product and process expertise. We are the partner for positive change.

Headquartered in Espoo, Finland, Metso employs over 17,000 people in close to 50 countries and sales for 2023 were about EUR 5.4 billion. The company is listed on the Nasdaq Helsinki. metso.com, x.com/metsoofficial