Arteche Lantegi Elkartea (ART) H2 2024 earnings summary

Executive summary

• Revenue rose 11.5% to €447.4m and order intake increased 12.3% to €532.4m, surpassing strategic plan targets.

• EBITDA increased 26.8% to €51.6m, with margin up 140 bps to 11.5%; net profit rose 56.7% to €18.9m.

• All business lines contributed to growth; APAC expanded 21.6%.

• Net financial debt/EBITDA fell to 0.5x from 1.0x, while strong cash generation supported the balance sheet.

• ESG performance improved, including higher CDP and EcoVadis scores and progress toward 2030 sustainability goals.

Financial highlights

• Direct margin increased 22.3% to €163.4m, reaching 35.5% of sales, up 340 bps year-over-year.

• EBIT rose 60.6% to €38.9m, with an 8.7% margin; net profit reached €18.9m and EPS was €0.33.

• FY2024 revenue of €447.4m was within €440–460m guidance; EBITDA of €51.6m and 11.5% margin exceeded guidance of €45.8–50.6m and 10.4–11.0%.

• Free operating cash flow was €40m, with 78% conversion before inorganic expenses and dividends; free cash flow was €24.9m.

• Shareholder remuneration included a €6m dividend, representing a 50% payout; EPS was €0.33.

Outlook and guidance

• 2026 EBITDA margin target of 12.5–13% remains within reach, with the current trajectory ahead of plan.

• Positive 2025 outlook supported by strong backlog and demand in electrification and digitalization.

• Continued organic and inorganic growth focus, particularly in automation and network reliability, with capacity expansion in China, Mexico, and Europe.

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