Enersense International (ESENSE) Q2 2024 earnings summary

Executive summary

• Revenue grew 23.3% year-over-year to EUR 199.0 million for January–June 2024, but EBITDA turned negative at EUR -5.0 million, mainly due to offshore business losses, EV charging ramp-up costs, and significant write-downs.

• Adjusted EBITDA for core businesses improved to EUR 7.9 million from EUR 6.5 million year-over-year, reflecting better profitability in transmission projects and Connectivity segment growth.

• Order backlog decreased 21% year-over-year to EUR 415 million, with declines across all segments as major projects were completed.

• Strategic focus shifted to core project and service operations for the green energy transition, with non-core businesses under strategic review and potential divestments considered.

• Leadership changes included appointment of a new CEO and CFO, and a new revolving credit facility was secured to support the revised strategy.

Financial highlights

• Q2 2024 revenue was EUR 100.8 million, up 16.8% year-over-year; EBITDA was EUR -9.5 million (Q2 2023: EUR 3.0 million).

• Operating result for H1 2024 was EUR -10.1 million (H1 2023: EUR -1.6 million); undiluted EPS was EUR -1.18 (H1 2023: EUR -0.34).

• Net financial expenses for H1 2024 totaled EUR -8.2 million, and cash and cash equivalents at period end were EUR 14.6 million.

• Cash flow from operating activities improved to EUR -0.2 million (H1 2023: EUR -18.4 million).

• Market value of shares dropped 53.5% year-over-year to EUR 48 million.

Outlook and guidance

• 2024 revenue expected between EUR 365–390 million; EBITDA forecasted at EUR 4–8 million, with adjusted core business EBITDA at EUR 17–21 million.

• Revenue growth anticipated, with profitability measures expected to improve EBITDA in the second half of the year.

• Guidance excludes potential divestments from ongoing strategic assessments.