Dürr (DUE) Q2 2024 earnings summary

Executive summary

• Achieved record H1 order intake of €2.79 billion, up 7.9% year-over-year, driven by strong automotive demand and robust service business; order backlog reached €4.6 billion.

• Sales revenue grew 6.9% year-over-year in H1 to €2.28 billion, with all divisions except Woodworking Machinery and Systems growing organically.

• EBIT before extraordinary effects rose 9.4% to €114.4 million, margin improved to 5.2% in Q2; net income declined by one-third due to higher extraordinary expenses and financial costs.

• Free cash flow improved to €44 million in H1, supported by disciplined net working capital management.

• Strategic restructuring includes merging divisions, sale of Agramkow completed July 1, 2024, and focus on core automation and sustainability.

Financial highlights

• H1 2024 order intake rose 8% to €2,792 million; sales revenues up 7% to €2,281 million year-over-year.

• EBIT before extraordinary effects increased 9% to €114 million; net profit declined 33% to €39 million due to higher financing costs and extraordinary expenses.

• Free cash flow: €44 million for H1 2024, up from -€6 million in H1 2023.

• Net financial debt increased to €533 million, mainly due to dividend payments and acquisitions.

• Gross margin in H1 2024 at 21.5%, down from 23.2% in H1 2023.

Outlook and guidance

• 2024 guidance confirmed: order intake €4.6–5.0 billion, sales €4.7–5.0 billion, EBIT margin before extraordinary effects 4.5–6.0%.

• Free cash flow guidance for 2024 remains at €0–50 million.

• Clean Technology Systems EBIT margin guidance raised to 7–8% for 2024.

• Industrial Automation Systems sales guidance reduced by €50 million and EBIT margin target lowered due to delayed order intake.

• Mid-cycle targets reaffirmed: sales >€6 billion by 2030, EBIT margin before extraordinary effects ≥8%.