Fortum Oyj Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Fortum Oyj (HEL:FORTUM) Full Year 2024 Results

Key Financial Results

• Revenue: €5.80b (down 14% from FY 2023).
• Net income: €1.16b (down 23% from FY 2023).
• Profit margin: 20% (down from 23% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: €1.30 (down from €1.69 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Fortum Oyj EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 6.5%.

The primary driver behind last 12 months revenue was the Generation segment contributing a total revenue of €3.80b (65% of total revenue). Notably, cost of sales worth €3.30b amounted to 57% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to €485.0m (36% of total expenses). Explore how FORTUM's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 1.3% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to grow by 2.9%.

Performance of the market in Finland.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Fortum Oyj (at least 1 which is concerning), and understanding these should be part of your investment process.

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