Arteche Lantegi Elkartea (ART) H2 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenue and order intake, with revenue at €447.4 million (+11.5% YoY) and order intake at €532.4 million (+12.3% YoY), surpassing strategic plan guidance for 2024–2026 and market growth.

• Net profit rose 56.7% to €18.9 million, with EPS at €0.33 (+66.7% YoY).

• Strong performance across all business pillars and geographies, with notable APAC expansion (21.6% growth), except for temporary slowdowns in Latin America.

• ESG initiatives advanced, with improved CDP and EcoVadis scores, carbon footprint reduction, and progress toward 2030 sustainability goals.

• Share price appreciated 88% in 2024, outperforming benchmark indices.

Financial highlights

• EBITDA grew 26.8% to €51.6 million, with margin at 11.5% (+140bps YoY); EBIT reached €38.9 million (+60.6% YoY).

• Direct margin improved to 35.5% (+340bps), driven by efficiency, product mix, and pricing.

• Free operating cash flow reached €24.9 million, with a conversion rate of 48–78% (before inorganic expenses/dividends).

• Dividend payout of 50% of net profit, totaling €6 million, with €0.106/share for 2023 and proposed €0.1658/share for 2024.

• Leverage reduced to 0.5x EBITDA (down from 1x), with net financial debt at €25.6 million.

Outlook and guidance

• Confident in achieving 2026 EBITDA margin target of 12.5–13%, with current trajectory ahead of plan.

• Positive outlook for 2025, supported by strong order backlog, robust demand in electrification and digitalization, and continued investment in renewables and grid automation.

• Continued focus on organic and inorganic growth, especially in automation and network reliability, with ongoing capacity expansions in China, Mexico, Europe, and APAC.

• R&D investment to remain above 3–3.5% of revenues, supporting innovation and sustainability.

• Sustainability targets include 50% carbon footprint reduction and 100% renewable energy by 2030.