Construction and truck equipment dealer Ferronordic’s revenue improved year over year in the third quarter as the company’s U.S. equipment dealer acquisition continues to carry the company.
Stockholm-based Ferronordic acquired Clearfield, Pa.-based Rudd Equipment in November 2023 for $95 million, and now has 13 facilities in nine states.
While the U.S. construction equipment market remains down compared to last year, Ferronordic continues to move toward its organizational objectives following the acquisition, Chief Executive Lars Corneliusson said on today’s earnings call.
“The market is slightly down from high levels in 2023, but the revenue was higher than in last quarter, and that is [because] we had a good mix and we sold a lot of large machines,” he said. “We do have a higher inventory and higher rental fleet, which is in line with our strategy to take market shares in the excavator segment.”
Despite the strong quarter, U.S. operations declined to 60% of Ferronordic’s total revenue, down 5 percentage points quarter over quarter, according to the earnings presentation.
By the numbers
Construction equipment and truck sales revenue rose 32.3% YoY, according to the earnings presentation.
The presentation also reported:
- U.S. equipment and truck sales finished at 336 million krona ($30.5 million);
- German equipment and truck sales landed at $16.9 million, down 53% YoY;
- Central Asian equipment and truck sales were $6.6 million, down 35.2% YoY;
- U.S. new unit sales totaled 61;
- German unit sales reached 96, down 60.2% YoY;
- Central Asian unit sales ended at 21, up 23.5% YoY;
- U.S. segment revenue was $62.3 million;
- German segment revenue closed at $33.8 million, down 35.2% YoY;
- Central Asian segment revenue finished at $7.5 million, up 18.8% YoY; and
- Total revenue totaled $103.7 million, up 77.4% YoY.
As U.S. operations carry the company’s portfolio, Ferronordic sees the potential for further growth, Corneliusson said.
“We’re optimistic about our expansion into the U.S. and the opportunities we see there with very strong demand supported by the dynamic economy, a significant need to upgrade the country’s infrastructure and extensive federal and state programs for doing so,” he said. “We expect that these programs will run for construction equipment throughout the cycle, and also other large construction projects, battery plants, data centers in the U.S. Midwest will continue to drive good demand in our market.”
Shares of Ferronordic [STO: FNM] were trading at $62.60 as of market close, up 6.10% or $3.60, from market open. The company has a market capitalization of $909.73 million.
Editor’s note: All amounts have been converted to U.S. dollars.
