adesso (ADN1) Q3 2024 TU earnings summary

Executive summary

• Achieved record sales of €961.3 million for the first nine months of 2024, up 15% year-over-year, driven by strong organic growth and a 14% increase in average headcount.

• EBITDA rose 24% year-over-year to €66.5 million, with Q3 EBITDA margin reaching 11.8% and improved capacity utilization.

• Net income for 9M 2024 reached €2.5 million, a turnaround from a loss in the prior year period.

• The company is on track to meet its full-year 2024 guidance, supported by improved utilization and an additional working day in Q4.

• Focus remains on profitability and cautious optimism for 2025 amid macroeconomic and political uncertainties.

Financial highlights

• Sales revenues grew 15% year-over-year to €961.3 million for 9M 2024; Q3 sales were €330.2 million, up 15% from Q3 2023.

• EBITDA margin improved to 6.9% for 9M 2024 (up from 6.4%); Q3 margin reached 11.8%.

• Earnings per share for 9M 2024 were €0.16, compared to -€0.05 in 9M 2023; Q3 EPS was €1.67, up from €0.86.

• Net working capital reduced by 15% year-over-year, and net debt improved to -€101.5 million.

• Free cash flow for 9M 2024 was -€30.7 million, a 64% improvement year-over-year, with factoring increased to €60 million.

Outlook and guidance

• Full-year sales target of over €1.25 billion is within reach, with EBITDA expected between €80–110 million and a 7% margin.

• Guidance confirmed for 2024, with strong demand for digitalization and software engineering services.

• Q4 2024 benefits from one additional working day and potential license income.

• Cautious optimism for 2025, with ongoing monitoring of macroeconomic and political uncertainties.