Boreo (BOREO) Q2 2024 earnings summary

Executive summary

• Q2 2024 operational EBIT was stable at EUR 2.4 million, with profitability rebounding to a 7.0% margin despite a 20% sales decline to EUR 33.8 million.

• Cost-saving actions delivered at least EUR 1 million in annual savings from Q2 2024, supporting margin resilience.

• Profit for Q2 was EUR 0.8 million, up from a weak Q1, but down from EUR 1.0 million year-over-year.

• Order books provide a solid foundation for performance improvement, especially towards Q4 2024 and H1 2025.

• Jesse Petäjä appointed as new CFO, effective September 1, 2024.

Financial highlights

• Net sales fell 20% year-over-year in Q2 2024 to EUR 33.8 million, with rolling twelve-month sales at EUR 144 million, down from over EUR 170 million fifteen months ago.

• Q2 operational cash flow was negative EUR 1.9 million, with H1 2024 operational cash flow at EUR 4.2 million.

• Operating cash flow for the last twelve months reached EUR 12.1 million.

• Operative earnings per share for H1 was EUR 0.21, down from EUR 0.29 last year, impacted by hybrid bond interests.

• Net debt at quarter-end was EUR 32.7 million, with net debt/operational EBITDA at 2.8x (target: 2–3x), and equity ratio improved to 40.1%.

Outlook and guidance

• Market conditions remain challenging with no significant improvement expected in H2 2024.

• Order books, especially in Putzmeister and Milcon, support expectations for better performance in Q4 and H1 2025.

• Cost-saving initiatives are expected to exceed the communicated EUR 1 million target.

• Q3 sales are expected to be similar to Q2, with Q4 anticipated to be stronger due to major deliveries.

• Long-term targets remain: 15% average annual operational EBIT growth, 15% ROCE, and net debt/operational EBITDA between 2–3.