• Net Sales Growth: Increased by 14% year-on-year in the fourth quarter.
• Order Book: Up 25% compared to the end of the previous year.
• EBIT Margin: Achieved 16.7% in the fourth quarter.
• Industrial Measurements Net Sales: Up by 12% year-on-year in the fourth quarter.
• Industrial Measurements EBIT Margin: Improved to 21.2%.
• Weather Environment Net Sales: Increased by 15% year-on-year in the fourth quarter.
• Weather Environment EBIT Margin: Reached 13.8%, the highest ever for this business area.
• Cash Conversion: Continued strong at 1% from operating items.
• Full Year Operating Margin: Finished at 15% for 2024.
• EPS: EUR 1.76, a significant increase from the previous year.
• 2025 Net Sales Outlook: Estimated to be in the range of EUR 590 million to EUR 620 million.
• 2025 EBITA Outlook: Estimated to be between EUR 90 million to EUR 105 million.

• Warning! GuruFocus has detected 8 Warning Signs with OERLF.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vaisala Oyj (VAIAF) reported a strong fourth quarter with a 14% year-on-year increase in net sales and a 25% increase in the order book.
• The company achieved an impressive EBIT margin of 16.7% for the fourth quarter, showcasing operational efficiency.
• Vaisala Oyj (VAIAF) successfully launched new instruments, including those for carbon capture, indicating a focus on long-term growth and innovation.
• The company was recognized by Time magazine as one of the world's best companies for combining sustainability with growth.
• Vaisala Oyj (VAIAF) maintained a strong cash flow and a low leverage balance sheet, reflecting financial stability.

Negative Points

• The company faces uncertainties due to geopolitical tensions and potential tariff discussions, which could impact future demand.
• Despite strong performance, the guidance for 2025 indicates a flat EBITA margin, suggesting limited margin improvement.
• The renewable energy sector, particularly offshore wind, is experiencing a slowdown, affecting short-term growth prospects.
• Industrial actions in Finland, including strikes, have already impacted operations and could continue to do so.
• The company acknowledges a lack of visibility in demand due to global uncertainties, which could affect future performance.

Q & A Highlights

Q: Was there any significant order in Q4, or was it generally good development? A: No, it was generally good development with lots of smaller and mid-sized orders. There was nothing extraordinary recognized in the fourth quarter. - Kai Oistamo, CEO

Q: Do you expect the profitability improvements seen in Q4 to continue into 2025? A: The improvements were due to operational efficiencies and cost control. While we aim to maintain these improvements, the comparison gets harder, and uncertainties in the global environment make it difficult to predict demand. - Kai Oistamo, CEO

Q: Can you explain the rationale behind the flat EBITA margin guidance for 2025 despite expected sales growth? A: The guidance reflects the uncertainties in the global market, including geopolitical tensions and potential tariff discussions, which create a lack of visibility on demand. - Kai Oistamo, CEO

Q: How is the U.S. market environment affecting your business, and have you seen changes in client behavior due to political uncertainties? A: There has been a gradual improvement in the U.S. market over the past three quarters, indicating increasing optimism among customers, despite the political uncertainties. - Kai Oistamo, CEO

Q: How did the weather subscription business perform in Q4, and what are the expectations for 2025? A: The subscription business saw organic growth of 18%, with additional contributions from recent acquisitions. We expect continued growth in 2025, both organically and from new assets. - Kai Oistamo, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.