Elis (ELIS) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 6.9% year-over-year to €2,246.7m, with organic growth of 5.5% driven by strong commercial momentum, new contracts, and pricing actions.

• Adjusted EBITDA margin improved by 120bps to 34.5%, reflecting productivity gains, logistics optimization, and improved energy purchasing.

• Net income declined 14.1% to €119.1m due to higher amortization, financial expenses, and tax, but headline net income rose 0.9% to €208.7m; headline net income per share up 1.6% to €0.83.

• Free cash flow after lease payments reached €55.5m, up €38.6m year-over-year.

• Upgraded full-year organic growth and EBITDA margin guidance, maintaining all other objectives.

Financial highlights

• Revenue: €2,246.7m (+6.9% year-over-year; +5.5% organic).

• Adjusted EBITDA: €774.3m (+10.9%), margin 34.5% (+120bps).

• Adjusted EBIT: €343.6m (+8.6%), margin 15.3% (+20bps).

• Free cash flow: €55.5m, up €38.6m year-over-year.

• Financial leverage ratio at 2.06x as of June 30, 2024.

Outlook and guidance

• Full-year organic growth now expected between 5.2% and 5.5% (previously ~5%).

• Adjusted EBITDA margin now expected between 35.2% and 35.5% (previously close to 35%).

• Adjusted EBIT margin expected stable year-over-year at ~16%.

• Headline net income per share expected above €1.75 (fully diluted); free cash flow target ~€340m.

• Financial leverage ratio expected to decrease by 0.2x by year-end.