DEME Group (DEME) H1 2024 earnings summary

Executive summary

• Achieved record results in H1 2024, with turnover up 30% year-over-year to €1.9 billion and strong performance across all segments, sustaining momentum from H2 2023.

• Order book remained stable at €7.6 billion, matching peak levels of the last four quarters and providing strong visibility.

• EBITDA rose 55% year-over-year to €345 million (18% margin), up from 15% in H1 2023.

• Net profit surged to €141 million from €30 million a year ago, with EPS at €5.58 versus €1.19 in H1 2023.

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

Financial highlights

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

• Turnover up 30% year-over-year to €1.9 billion, with all segments contributing.

• EBITDA up 55% to €345 million (18% margin); EBIT up 163% to €150 million (7.8% margin).

• Net profit up 370% to €141 million (7.4% margin); EPS at €5.58 vs. €1.19 year-over-year.

• 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.

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%.