Brockhaus Technologies (BKHT) Q3 2024 earnings summary

Executive summary

• Achieved strong organic revenue growth of 23% year-over-year to €175.3 million in the first nine months of 2024, with high profitability and robust performance across both Bikeleasing and IHSE segments.

• Record free cash flow and operating cash flow, with free cash flow before tax reaching €26.2 million, up 66% year-over-year.

• Adjusted EPS rose 12% to €1.42 compared to 9M 2023, continuing a strong upward trend.

• Profit for the period declined to €14.3 million from €15.6 million due to a non-cash write-down of an earn-out receivable from the Palas sale.

• Confirmed annual forecast for 2024 and maintained a positive medium-term outlook for 2025, supported by robust segment performance.

Financial highlights

• Adjusted EBITDA rose 16% to €68.0 million (margin 38.8%), and adjusted EBIT increased to €64.2 million (margin 36.6%) for the nine-month period.

• Free cash flow before tax reached €26.2 million, up 66% year-over-year; operating cash flow in Q3 2024 was a record €27.6 million.

• Net debt reduced to €42.4 million, with leverage at 0.56x adjusted pro forma EBITDA, down from 0.9x at year-end 2023.

• Dividend of €0.22 per share paid in June 2024; €2.3 million total dividend distributed.

• Earnings per share fell to €-0.22 from €0.25 due to the non-cash write-down and share buyback.

Outlook and guidance

• 2024 revenue expected between €220–240 million and adjusted EBITDA between €80–90 million, representing 18–29% and 29–45% growth, respectively, over 2023.

• Medium-term 2025 outlook unchanged: revenue of €290–320 million and adjusted EBITDA margin of 40%, assuming no further acquisitions.

• Management expects Probonio to contribute positively to adjusted EBITDA in 2025.