Barco (BAR) H2 2024 earnings summary

Executive summary

• 2024 began with a slow start but improved in the second half, ending nearly flat year-over-year, with strong performance in the Americas and weaker conditions in EMEA and APAC.

• Order book reached a record €564 million, with a book-to-bill ratio above one and 68% of revenue from eco-labeled products.

• EBITDA margin was 12.8% (including a €10 million gain from a US sale-and-leaseback), with a notable step-up to 16.7% in 2H24.

• Net income was €63 million, with EPS of €0.71; free cash flow was strong at €110 million, driven by improved working capital.

• Net cash position ended at €259 million after dividend, share buyback, and Cinionic buyout.

Financial highlights

• Full-year sales were €946.6 million, down 10% year-over-year; Americas grew, while EMEA and APAC declined.

• Gross profit margin was 40.7%, down 1 percentage point year-over-year, supported by new products and software.

• EBITDA reached €121 million (12.8% of sales), including a €10 million one-off gain; net income at €63 million (EPS €0.71).

• Free cash flow was €110 million, up €72 million year-over-year, with net working capital at 11.8% of sales.

• CapEx was €42.6 million, focused on Cinema-as-a-Service and factory automation.

Outlook and guidance

• Management expects topline growth and higher EBITDA margin in 2025, supported by normalized inventory, new product launches, and increased software mix.

• Guidance for margin improvement is based on the reported 12.8% EBITDA margin, including the one-off gain.

• Proposed gross dividend of €0.51 per share, up from €0.48, and a share buyback program up to €60 million over 12 months.