Arteche Lantegi Elkartea (ART) H1 2024 earnings summary

Executive summary

• Orders intake rose 15.0% year-over-year to €284.5 million, outpacing market growth.

• Revenue increased 19.6% year-over-year to €224.9 million, with all business segments contributing to growth.

• Net profit surged 73.0% year-over-year to €7.4 million, reflecting strong operational performance.

• EBITDA margin improved to 11.0% from 9.3% year-over-year, reflecting operational efficiency gains.

• All business lines contributed positively, with new product launches and expansion into new markets.

Financial highlights

• EBITDA grew 41.4% year-over-year to €24.6 million, with margin up 173 bps to 11.0%.

• Direct/gross margin improved by 300 bps to 35.0% compared to H1 2023.

• EPS increased to €0.13 from €0.08 year-over-year.

• Book-to-bill ratio reached 1.27x, and backlog stood at €264.7 million.

• Free cash flow for the period was €8.1 million, with a cash conversion rate of 33%.

Outlook and guidance

• FY 2024 revenue expected between €440–460 million, up from €438.1 million LTM.

• FY 2024 EBITDA guidance set at €45.8–50.6 million, with margin projected at 10.4–11.0%.

• Management expects continued growth in revenue and profitability, supported by a strong order backlog and diversified geographic exposure.

• The company maintains a positive outlook for the remainder of 2024, with no significant liquidity risks identified.