Daldrup & Söhne (4DS) H2 2023 earnings summary

Executive summary

• Achieved gross revenue of €48.4 million in 2023, exceeding forecasts by €7 million and up 31% year-over-year.

• EBIT rose 42.6% to €2.6 million, with an EBIT margin of 5.3%, above the forecasted range.

• Net profit remained stable at €0.9 million, and the equity ratio improved to 50.6%.

• Order backlog reached €38.5 million by March 2024, ensuring high capacity utilization into 2025.

• Major projects completed in Switzerland and Germany, with strong demand for geothermal and special drilling services.

Financial highlights

• Sales revenue increased to €49.1 million from €38.2 million year-over-year.

• EBITDA reached €4.9 million (up from €4.2 million), and EBIT was €2.6 million (up from €1.8 million).

• Gross profit rose to €28.9 million, though gross margin declined to 59.7% from 66.7%.

• Personnel expenses increased slightly to €10.3 million, but the personnel expense ratio fell to 21.3%.

• Investments in property, plant, and equipment totaled €3.0 million, mainly for drilling equipment upgrades.

Outlook and guidance

• Management expects 2024 gross revenue of approximately €47 million and EBIT margin of 5–7%.

• Order backlog and pipeline support capacity utilization into 2025.

• Regulatory improvements and decarbonization targets are expected to drive further demand for geothermal projects.