AAC Clyde Space (AAC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales fell 29.4% year-over-year to SEK 53.6M, impacted by project delays and supplier issues.

• Order backlog reached SEK 660M, up from SEK 443.7M, reflecting strong contract wins.

• EBITDA for Q2 was SEK -16.5M, down from SEK 2.3M; EBIT was SEK -27.4M, and net loss after tax was SEK -27.5M.

• H1 2024 net sales decreased 16.6% year-over-year to SEK 125.0M; EBITDA was SEK -3.8M, and EBIT SEK -31.2M, including a SEK -6.5M impairment.

• Cash flow from operating activities improved to SEK +6.8M in Q2, but was SEK -6.2M for H1.

Financial highlights

• Gross margin in Q2 improved to 61% from 56% year-over-year.

• Cash and cash equivalents at June 30, 2024, were SEK 36.7M, up from SEK 13.0M a year earlier.

• Equity ratio stood at 68% at the end of Q2.

• Order backlog increased 49% year-over-year to SEK 660M.

• Basic and diluted EPS for Q2 was SEK -4.82, compared to SEK -1.14 last year.

Outlook and guidance

• Full-year 2024 net sales guidance is SEK 350–400M, a 27–45% increase over 2023.

• EBITDA margin guidance for 2024 is 5–10%, up from 0.4% in 2023.

• Management expects improved margins and resilience from expanded service offerings and new satellite launches.