Glaston’s Financial Statement Bulletin January 1 – December 31, 2024

This release is a summary of Glaston Corporation's financial statements bulletin for 2024. The complete report is attached to this release as a pdf-file. The stock exchange release is also available on the company's website at the address www.glaston.net.

OCTOBER–DECEMBER 2024 IN BRIEF

• Orders received totaled EUR 53.1 (57.6) million
• Net sales totaled EUR 56.8 (59.7) million
• Comparable EBITA was EUR 4.2 (4.6) million, i.e. 7.5 (7.6)% of net sales
• The operating result (EBIT) was EUR 0.6 (2.7) million
• Comparable earnings per share were EUR 0.025 (0.039)

JANUARY–DECEMBER 2024 IN BRIEF

• Orders received totaled EUR 202.7 (220.3) million
• Net sales totaled EUR 217.9 (219.7) million
• Comparable EBITA was EUR 15.3 (14.9) million, i.e. 7.0 (6.8)% of net sales
• The operating result (EBIT) was EUR 5.8 (8.1) million
• Comparable earnings per share were EUR 0.092 (0.104)
• The Board of Directors proposes to the AGM a reverse share split (2:1) and a capital repayment of EUR 0.055 per current share (or EUR 0.11 per share calculated on the number of outstanding shares after the execution of the proposed reverse split)

GLASTON’S OUTLOOK FOR 2025

In 2025, the glass processing equipment markets are expected to remain soft. The architectural market does not show signs of significant recovery for this year. For mobility glass processing equipment, the market activity in China is expected to remain good with high volatility in the short-term. Amid global economic uncertainty and continued geopolitical tensions, high uncertainty exists concerning customers’ decision-making.

Given the cautious market environment, the company’s growth opportunities arise from new product innovations, services, and upgrade products. Implemented and on-going structural cost-saving actions support profitability. Glaston Corporation estimates that its net sales will remain at the same level and comparable EBITA will stay at the same level or increase slightly in 2025 from the levels reported for 2024. In 2024, Group net sales totaled EUR 217.9 million and comparable EBITA was EUR 15.3 million.

CEO TONI LAAKSONEN:

“Throughout 2024, the market environment was challenging. The Architectural market remained soft, and EMEA was particularly affected by the weaker market environment. The Mobility market, in China mainly, developed well, supported by their transition to electric vehicles. The lower construction activity in several regions was reflected in both the order intake and the net sales development. Despite the cautious markets, the steady development in comparable EBITA continued as we started to benefit from the structural cost-saving actions taken earlier in the year.

The fourth-quarter order intake was down 8% to EUR 53.1 million due to weaker order intake in both the Architectural and Mobility, Display & Solar segments, while Service’s order intake was on the same level as in the comparison period. The full-year order intake was also down 8% due to the soft Architectural market.

Net sales for the fourth quarter and the full year decreased. Net sales in the fourth quarter totaled EUR 56.8 (59.7) million, with the Insulating Glass Technologies product area exceeding last year’s levels. For the full year, EUR 217.9 (219.7) million was recorded. Insulating glass and mobility technologies showed positive growth figures.

Comparable fourth-quarter EBITA was slightly behind the comparison period and was EUR 4.2 million (7.5% margin).  Full-year comparable EBITA improved and was EUR 15.3 (14.9) million supported by the gradual turnaround in Mobility, Display and Solar.

To further accelerate strategy execution, we announced a plan for organizational changes in October. The planned changes are now completed, and the year has started under the new organization. Glaston has three Business Functions in the new structure: Market Areas, Solutions & Operations, and Service Supply & Development. With this reorganization, we want to strengthen our resources in the customer interface and increase our investments in service capabilities.

To accelerate profitability development and reach additional operational efficiencies, the optimization of our global operations and supply chain continues. In line with this, the transfer of all pre-processing equipment production from Switzerland to our factory in Tianjin, China, progressed in the final quarter. The transfer is estimated to be completed during the summer period 2025. However, we continue to have sales and service functions in Switzerland to maintain the customer interface and provide service to our customers. In addition to operational efficiencies, we can already see that our strategy to concentrate all Mobility pre-processing production to China has benefitted us in getting more orders locally.

Employee engagement and safety at work are among our mid-term strategic targets. In 2024, our employee engagement improved to 76 from 70 in the previous year and the set target, 75 out of 100, was met. Our group-wide safety target is zero accidents. In 2024, our performance improved slightly and our accident frequency rate LTIFR was 5.7 (6.3). The direction is right, but the numbers show that we need to continue our systematic safety work.

Promoting sustainable development is integral to our business strategy as our technologies enable more energy-efficient and safe glass products. In line with the EU taxonomy, Glaston’s enabling activities that substantially contribute to climate change mitigation had a 46.4 (45.4)% share of total net sales in 2024. These taxonomy aligned activities mainly consist of Insulating Glass Technologies and related services. 

2024 was another busy year for the company and I want to thank the Glaston team for their contribution throughout the year. I also want to thank our customers, shareholders and other stakeholders for their continuous trust and support.

In 2025, we do not expect a major turnaround in the Architectural market. In the Mobility market, we expect the positive development to continue driven by China. Innovations for improved process efficiency and sustainability, such as new energy-efficient solutions or the light-weight thin triple insulating glass processing lines, are of interest to our customers and provide growth opportunities even in the current market situation. On this basis, we expect net sales to remain at the same level and comparable EBITA to stay at the same level or increase slightly in 2025 compared to 2024.”

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