Biesse (BSS) Q3 2024 earnings summary

Executive summary

• Net revenues for the first nine months of 2024 were €560.8 million, down 5.9% year-over-year, with adjusted EBITDA at €44.0 million, a 29.8% decrease, and net profit dropping 83.9% to €2.6 million; the GMM Group acquisition contributed to headcount growth and partially offset declines.

• The order backlog at the end of Q3 2024 was approximately €276 million, stable versus year-end 2023, aided by the GMM Group acquisition.

• The Group accelerated strategic projects, including restructuring and efficiency initiatives, and continued integrating the GMM Group to strengthen its international presence.

• Economic environment remains weak, with high inflation, restrictive monetary policy, and limited GDP growth in most markets except India.

• Clients face credit constraints, leading to increased financial holds and delayed machine deliveries.

Financial highlights

• Revenue for the period was €560.8 million (–5.9% year-over-year), with adjusted EBITDA at €44.0 million (7.9% margin), and adjusted EBIT at €14.5 million (2.6% margin), all significantly down from the prior year.

• Net profit was €2.6 million (0.5% margin), down 83.9% year-over-year, with a tax rate rising to 62.4%.

• Order intake for the first nine months reached €511.2 million, but backlog declined to €275.5–280 million.

• Net financial position (excluding IFRS 16) was positive at €4.2 million, but negative €28.1 million including IFRS 16.

• Net operating working capital increased to €96.3 million, mainly due to the GMM acquisition.

Outlook and guidance

• Revenue and main economic indicators are expected to remain stable in the next quarter and into 2025, with no significant increase or decrease anticipated.

• Management is accelerating strategic projects in the 2024–2026 plan, focusing on connectivity, automation, and efficiency.

• Persistent external uncertainties include restrictive monetary policies, reduced government incentives, and geopolitical tensions.