DEME Group (DEME) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 results with turnover up 30% year-over-year to €1.9 billion, driven by strong performance and high activity across all segments, and a stable order book at €7.6 billion matching peak levels of recent quarters.

• EBITDA rose 55% to €345 million (18% margin), up from 15% in H1 2023, and net profit surged to €141 million from €30 million a year ago.

• Free cash flow improved to €278 million from -€178 million a year ago, halving net financial debt to €352 million.

• All segments contributed to growth, with major projects executed in the UK, France, Taiwan, US, and across Europe.

Financial highlights

• Turnover up 30% year-over-year to €1.9 billion, with all segments contributing; EBITDA at €345 million (+55% y-o-y, 18% margin); EBIT at €150 million (+163% y-o-y, 7.8% margin); net profit at €141 million (+367% y-o-y, 7.4% margin); EPS at €5.58 (up from €1.19 y-o-y).

• Order book stable at €7.6 billion, providing 2-3 years of visibility.

• CapEx at €167 million, mainly for fleet expansion and maintenance.

• Free cash flow before dividend at €278 million; net financial debt/EBITDA ratio improved to 0.5.

• Total cash increased to €509 million from €309 million a year ago.

Outlook and guidance

• Raised full-year revenue growth outlook from at least 10% to around 20%, with record turnover expected for 2024.

• EBITDA margin for 2024 expected to be comparable to 2023 (around 18%); CapEx for 2024 guided at €300–350 million.

• For the next few years, topline expected to remain at 2024 levels, with EBITDA margin anticipated between 16%-20%.