Cargotec's 2024 Annual Report: A Mixed Bag of Results and Strategic Shifts

Cargotec Corporation, a leading provider of smart and sustainable on road load-handling solutions, has published its 2024 annual report and financial statements. The report provides a comprehensive overview of the company's performance and strategic developments during the year. Here, we delve into the key highlights and implications of Cargotec's 2024 annual report.

Financial Performance in 2024

Cargotec's financial performance in 2024 showed mixed results compared to 2023. Orders received increased by 3% to EUR 1,509 million, driven by a positive book-to-bill ratio in the fourth quarter. However, sales decreased by 8% to EUR 1,647 million, primarily due to a decline in eco portfolio sales, which decreased by 11% to EUR 476 million. Service sales, on the other hand, increased by 2% to EUR 462 million, reflecting the growing demand for maintenance and after-sales services.

Operating profit decreased by 1% to EUR 217 million, primarily due to the decline in sales. However, the comparable operating profit margin increased to 13.2% from 12.3% in 2023, indicating improved operational efficiency. Cash flow from operations before finance items and taxes increased by 7% to EUR 582 million, reflecting Cargotec's strong focus on working capital management and improved collection processes.

Segment Reporting Update

Cargotec updated its segment reporting due to the signed sales agreement of MacGregor and the partial demerger of the company. As a result, MacGregor is now reported as a part of discontinued operations, and the MacGregor segment was removed from Cargotec's financial statements review 2024. From the first quarter of 2025 onwards, Cargotec plans to have two reporting segments: Equipment and Services.

To provide a basis for comparison, Cargotec published reclassified financial information of continuing operations, discontinued operations, reportable segments, and Corporate administration and support functions for all quarters of 2023 and the first three quarters of 2024 separately, as well as for the full year 2023. This reclassification allows investors and stakeholders to better understand the financial performance of Cargotec's core businesses.

Strategic Focus and Outlook

Cargotec's strategic focus remains on delivering the best customer experience every day with the most engaged people and partners. The company is committed to delivering smart and sustainable on road load-handling solutions, aligning with its commitment to environmental responsibility and sustainability.

Cargotec estimates its continuing operations' comparable operating profit margin in 2025 to be above 12.0 percent, reflecting the company's confidence in its strategic direction and operational efficiency. The company will continue to execute its transformation plan successfully, as it has done in 2024, and adapt to changes in the market environment to maintain its positive trend in orders received and address the decrease in sales.

In conclusion, Cargotec's 2024 annual report highlights the company's mixed financial performance, strategic shifts in segment reporting, and commitment to delivering smart and sustainable on road load-handling solutions. As Cargotec continues to execute its transformation plan and adapt to market changes, investors should monitor the company's progress and potential opportunities in the coming years.