EL.En. (ELN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 4% year-over-year to €153.3M, with EBIT up 29% to €16.7M, reflecting a recovery in profitability.

• For the first nine months, revenue was €466.2M, down 5.4% year-over-year, with medical sector up 2.1% to €294M and industrial down 16% to €172.2M.

• EBIT for the nine months was €50.9M, down 1.7% year-over-year, but pre-tax income rose 5.8% to €53.8M.

• Gross margin improved to 40.8% from 38%, aided by €1.9M in insurance/government proceeds.

• Announced a framework agreement to sell the majority stake in the laser cutting business to YOFC for €55.3M, shifting future business focus.

Financial highlights

• EBITDA for 9M 2024 was €62M (13.3% margin), nearly flat year-over-year, with Q3 EBITDA up 27% to €20.6M.

• Net financial position improved to €73.9M as of September 30, 2024, up from €54.6M at 2023 year-end.

• Net financial loss increased to €1.6M due to higher FX losses and interest expenses.

• Net financial charges increased 87.2% year-over-year for 9M 2024.

• Net income before taxes was €53.8M, up from €50.8M last year.

Outlook and guidance

• 2024 EBIT is expected to increase over 2023, but consolidated revenue will not match 2023's record due to the cutting sector decline.

• Guidance for 2024 remains based on the current consolidation perimeter until the cutting business sale is finalized.

• Pending the sale, future reporting will reclassify the cutting segment, with pro forma results to be provided.

• Management is optimistic for 2025, expecting continued recovery in some areas, though some segments may remain flat or weaker.