LEAX publish Annual Report for 2024
2024 was a challenging year for LEAX Group, driven by continued weak demand in the automotive industry, geopolitical uncertainty and macroeconomic headwinds. Despite a 7.8% decrease in net sales to SEK 2,012.8 million and a negative operating result of SEK -45.2 million, we have taken extensive measures to strengthen our long-term competitiveness and profitability.
Our cost savings program, with an expected annual earnings improvement of SEK 100 million, showed clear effects already in the fourth quarter of 2024. The program includes structural efficiency improvements in several parts of the business, and at the end of the first quarter of 2025, more than 60% of the measures have been implemented. This confirms that we are on the right track and strengthens our confidence that the program will contribute to sustainable improvements in both cash flow and profitability.
Our investments in electrification remain a strategic priority. Although the development in this segment has been volatile, with lower sales and negative impact from our operations in Latvia, we see structural improvements for 2025. Our expectation is that this unit will return to positive cash flow during the year.
We also see new growth opportunities. In the defense industry, we have identified strong underlying demand and growing budgets, creating good conditions for expansion. By capitalizing on our technical expertise and manufacturing capacity, we are positioning ourselves as a relevant and reliable player in this segment as well.
We enter 2025 with realistic expectations of continued challenging market conditions in the first quarter, but with a stronger order situation as of Q2. Our implemented cost efficiency measures, our focus on operational excellence and our commercial development are expected to gradually contribute to improved financial performance.
LEAX remains committed to its strategy of building a more resilient and focused company, with sustainable profitability as its guiding objective. I would like to thank our employees for their dedication and our shareholders and business partners for your continued confidence.
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,000 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany and Mezökövesd in Hungary. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 2.0 billion in 2024.