Alfa Laval AB

ALFA: XSTO (SWE)
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Alfa Laval Earnings: Marine Order Buoyancy Persists in Late 2024; Shares Expensive

Alfa Laval's order intake remained on a high level in the third quarter of 2024, holding steady relative to the buoyant order intake in the prior quarter and up 15% organically year on year, with elevated demand persisting for the marine division amid buoyant global shipbuilding market conditions. Organic third-quarter revenue rose 6%, supported by Alfa Laval's order backlog, which grew once more in the quarter and stands at SEK 52.1 billion as of September. We expect the healthy order book position to support earnings in 2025, despite a likely new-order headwind as the spike in demand for Alfa Laval's marine division subsides.

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