Alimak Group accelerates profitable growth despite inflation

20 October 2022

Alimak’s third-quarter reports show revenue jumped 21% with acquisition of Tall Crane Equipment and Tractel, but 7% of that growth was organic. Photo: Alimak Group

Alimak Group AB’s third quarter results suggest its New Heights Programme is delivering on its design with solid organic growth, increased margins and accelerated merger and acquisition activity. The giant, Sweden-based designer/manufacturer of vertical access solutions engineered a 21% revenue jump in the quarter to MSEK 1,095 (million Swedish kronor, or $970.8 million) at an EBITA margin of 13.7%.

During the quarter Alimak closed the acquisition of Tall Crane Equipment and signed the deal to acquire Tractel. Nevertheless, the company’s organic revenue increased 7%.

January-to-September results showed similar growth. Revenue increased 15% to MSEK 3,109 ($276.6 million) at 12.8% EBITA margin. Organic revenue growth was 4%.

Tractel to add operations

The MEUR 500 (million euro, or $490.1 million) acquisition of Tractel added a SEK 6 billion ($535.6 million) annual revenue stream at what Ole Kristian Jødahl, Alimak president and CEO, calls “stable high margins for the last ten years.

“We are excited to get all this competence on board and all the opportunities for increased value creation the acquisition brings into our existing business as well as adding a new vertical, Height Safety & Productivity Solutions.”

That acquisition is expected to close in the fourth quarter.

Tall Crane strategy
Graphic: Alimak Group

In August, Alimak consolidated its MSEK 215 (27 million Canadian dollars) acquisition of Tall Crane Equipment LTD, a hoist and crane rental services provider headquartered in Langley, British Columbia, Canada. Tall Crane, said Jødahl, “reflects our strategic goal of being close to our customers in the markets they operate. Tall Crane´s rental services business provides a good foundation to expand Alimak Group’s new and used product offerings, establishing a wholly owned footprint in Canada.”

Growth in top markets

Third-quarter performance in Alimak’s three largest markets was dramatic:

  • In Façade Access, order intake leaped 57%, corresponding to an organic increase of 36%. Revenue increased by 28% – 11% organically.
  • In Construction, order intake jumped 20%, with 3% organic increase. Revenue increased by 27%, with an organic increase.
  • Industrial order intake grew 24%, with a 12% organic increase. Revenue increased 30%, with organic growth of 15%.
Fighting inflation

“We have continued to mitigate the effects of high cost inflation through active price management, with several price increases made during the year and good cost control,” said Jødahl. “The entire organization has worked diligently to manage the current challenges, in close dialogue with our customers, suppliers and partners. Cash flow improved in the quarter, compared to the first six months of the year, as a result of increased cash collection, and we will continue to have focus on the working capital.”

Delivered directly to your inbox, Scaffold & Access Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest Events
How technology is revolutionizing MEWP training
Industry expert to provide in-depth look at how MEWP training is delivered at Working at Height Conference
Speaker announcement: TJ Lyons on MEWP safety at Working at Height conference
TJ Lyons to present on the philosophy of accident prevention at November event
First speakers announced for Working at Height Conference
John McClelland, TJ Lyons, Scott Owyen, Bart Krzysztofek and more come on board for Nov. 20 access and rental conference
Off-Highway Research

The gold standard in market research

Off-Highway Research offers a library of more than 200 regularly updated reports, providing forensic detail on key aspects of the construction equipment industry.

Our detailed insights and expert analyses are used by over 500 of the world’s largest and most successful suppliers, manufacturers and distributers, to inform their strategic plans and deliver profitable growth.

Click here to visit our website