ElringKlinger (ZIL2) Q2 2024 earnings summary

Executive summary

• SHAPE30 transformation strategy is being implemented, focusing on sustainability, digitalization, product transformation, and competitiveness.

• Expansion in battery and fuel cell technology includes new facilities in Germany and the US, with EKPO securing contracts in aviation and automotive sectors.

• AGM approved an unchanged €0.15 dividend; Helmut P. Merch appointed Chairman of the Supervisory Board.

• Financial position remains solid with equity ratio at 45.1% and net financial debt reduced to €350.4 million.

• E-Mobility business ramped up, with nomination volume supporting future growth.

Financial highlights

• Q2 2024 sales revenue was €445 million, down 5.1% year-over-year; H1 2024 revenue was €910.2 million.

• Adjusted EBIT margin in Q2 2024 was 5.0%; adjusted EBIT was €22.5 million.

• EBITDA in Q2 2024 was €49.7 million, up 6.2% year-over-year; EBITDA margin 11.2%.

• Earnings per share for H1 2024 rose to €0.37 from €0.14 year-over-year; Q2 EPS increased to €0.15 from €0.04.

• Net financial debt as of June 30, 2024, was €350.4 million, with a net debt/EBITDA ratio of 1.7.

Outlook and guidance

• FY 2024 guidance confirmed: slight organic revenue growth and adjusted EBIT margin around 5%.

• Operating free cash flow targeted at 2% of revenue; ROCE/ROACE expected at around 6%.

• Medium-term targets: 5–7% annual organic growth, adjusted EBIT margin around 7%, operating free cash flow approx. 3% of revenue.

• Double-digit growth in electric and fuel cell vehicle production anticipated in H2 2024.