CeoTronics (CEK) H2 23/24 earnings summary

Executive summary

• Revenue reached €29.6M, just 1.5% below the prior year's record, with a strong second half contributing €16M in the last four months.

• Order backlog surged 838.1% to €70.9M, driven by a major Bundeswehr contract and robust order intake (+348.3% to €93M).

• EBIT fell 35.2% to €2.5M and net income dropped 50.6% to €1.25M, mainly due to a weak first eight months and higher costs.

• Equity increased to €19.9M, but the equity ratio declined to 45.4% due to higher bank liabilities for pre-financing large orders.

• Dividend proposal of €0.15 per share, representing 87.1% of net income.

Financial highlights

• Revenue: €29.6M (–1.5% year-over-year); EBIT: €2.5M (–35.2%); Net income: €1.25M (–50.6%).

• EBITDA: €3.9M (prior year: €5.3M); EBIT margin: 8.5% (prior year: 12.9%).

• Cash flow from operations: –€12.1M (prior year: +€4.7M), mainly due to inventory buildup.

• Equity ratio: 45.4% (prior year: 58.7%); net debt increased due to pre-financing requirements.

• Order intake: €93M (+348.3% year-over-year); order backlog: €70.9M (+838.1%).

Outlook and guidance

• Revenue for 2024/25 expected at ~€46M, with net income of ~€3.5M and continued dividend capacity.

• Recurring revenue share expected to rise significantly, supported by long-term contracts and service agreements.

• Positive multi-year outlook based on high order backlog and ongoing defense sector investments.