Arteche Lantegi Elkartea (ART) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 19.6% year-over-year to €224.9 million, with all business lines and regions contributing to growth and new product launches.

• Net profit surged 73% year-over-year to €7.4 million, reflecting strong operational performance.

• Order intake increased 15% to €284.5 million, outpacing market growth and supporting a robust book-to-bill ratio of 1.27x.

• Strategic expansion included doubling production in Indonesia, opening a new plant in Mexico, and entering energy storage via Teraloop partnership.

• ESG initiatives advanced, with 42% reduction in Scope 1 and 2 emissions since 2022, 59% renewable energy use, and 67% waste recycling.

Financial highlights

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

• Direct/gross margin improved to 35.0% of sales, up from 32.0% year-over-year.

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

• Net financial debt improved to €39.7 million, with leverage ratio reduced to 0.8x EBITDA.

• Free cash flow/EBITDA at 33% as of June 30, 2024.

Outlook and guidance

• FY 2024 revenue expected between €440–460 million, with EBITDA guidance at €45.8–50.6 million and 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.

• Results align with the 2024–2026 strategic plan, targeting continued growth and sustainability.