adesso (ADN1) H1 2024 earnings summary

Executive summary

• Sales increased 16% year-over-year to €631.1 million in H1 2024, driven almost entirely by organic growth and a 14–15% headcount expansion.

• EBITDA rose 10% to €27.7 million, but consolidated earnings were negative at -€9.9 million, with EPS at -€1.51, due to higher depreciation, interest expenses, and lower capacity utilization.

• All industries and regions showed growth, with Germany outperforming at 17% and the DACH region comprising 95% of total volume; international expansion continued with acquisitions in Turkey, Sweden, Italy, India, and Saudi Arabia.

• The company maintained its sales target for 2024 but lowered its EBITDA guidance due to below-average capacity utilization, weak license sales, and higher costs.

• Dividend per share increased to €0.70 for 2023, with a stated aim to raise dividends continuously.

Financial highlights

• EBITDA margin was 4.4% in H1 2024, down from 4.6% in H1 2023, due to low capacity utilization and underperformance in the IT Solutions segment.

• Net leverage improved by €28 million and net working capital by €40 million year-over-year; net debt position improved to -€115.4 million.

• Free cash flow improved, reaching a record LTM per share of €9.41, supported by factoring.

• Personnel costs per FTE up 2–17%; employee growth in line with sales growth.

• Liquid assets increased to €52.1 million as of 30 June 2024.

Outlook and guidance

• Full-year 2024 sales guidance maintained at above €1.25 billion, with H2 expected to be stronger due to improved utilization and more working days.

• EBITDA guidance lowered to €80–110 million (from €110–130 million), still above last year’s €80 million.

• IT services expected to remain strong, while IT solutions are forecasted to recover only in H2 2025.