ACTIA Group (ALATI) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €279.5 million, down 3.2% year-over-year, mainly due to a slowdown in certain target sectors, with 60.2% generated internationally.

• Operating income rose to €21.6 million from €7.6 million, driven by a €20 million software transfer to Ampere.

• Net income reached €12.5 million, a significant increase from €1.8 million in H1 2023, reflecting strong margin expansion and one-time gains.

• EBITDA improved to €35.2 million from €20.7 million year-over-year, up 70.0% due to strategic transactions and operational efficiency.

• Free cash flow reached €21.8 million, and net debt was reduced by €11.0 million to €176.9 million compared to end-2023.

Financial highlights

• Material consumption rate improved to 51.8% from 55.4% due to lower input costs and euro appreciation.

• Personnel expenses increased to €83.2 million, reflecting salary hikes, workforce growth, and inflation.

• External expenses decreased by 4.5% to €36.2 million, with less outsourcing and lower transport costs.

• Net debt reduced to €176.9 million from €187.9 million at year-end 2023; repayments of borrowings totaled €22.5 million.

• Order book stood at €428.4 million, with 79.9% expected to convert within a year.

Outlook and guidance

• 2024 turnover target revised to between 0% and -5% due to a deteriorating economic context and limited order visibility.

• Medium-term goal of €800 million turnover by 2027 reaffirmed, supported by recent contract wins.

• Strategic growth expected from Aerospace and Engineering Services divisions, especially in H2.