Applus Services (APPS) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €1,094.3 million, up 9.3% year-over-year, driven by robust organic growth and strong performance across all four divisions, despite negative FX impacts.

• Adjusted operating profit rose 13.2% to €125.2 million, with margin improvement to 11.4% from 11.0% in H1 2023.

• Free cash flow increased 10.1% to €65 million, reflecting robust cash generation.

• IDIADA contract renewed for 25 years; delisting process initiated, with expectation to become private in 2024.

• Sustainability progress recognized, retaining AA MSCI ESG rating and other high ESG scores.

Financial highlights

• Adjusted EBITDA increased 12.6% to €186.9 million; adjusted net profit was €61.0 million, up 1.6%.

• Statutory net profit attributable to the parent was a loss of €1.1 million due to significant one-off costs related to the takeover bid and higher depreciation.

• Net debt (pre-IFRS16) was €701 million, with leverage at 2.4x EBITDA, well below the 4.0x covenant.

• Capex was €32.3 million, representing 3.0% of revenue.

• Adjusted free cash flow was €64.6 million, up 10.1% year-over-year.

Outlook and guidance

• Full-year guidance maintained: organic revenue growth in mid to high single digits at constant FX and adjusted operating profit margin around 11.5%.

• Continued focus on portfolio quality and further acquisitions.