Erbud (ERB) Q4 2024 earnings summary

Executive summary

• EBITDA rose 80% year-over-year to PLN 63.8 million, driven by higher sales profitability and a profitable RES segment disinvestment, with margin up 1 pp to 2.1%.

• Contract awards increased 7% year-over-year to PLN 3.4 billion, with a 10% rise in backlog to PLN 3.8 billion.

• Cash position at year-end was PLN 330 million, with surplus funds over interest liabilities.

Financial highlights

• Revenues decreased 8% year-over-year to PLN 3.0 billion, but gross margin improved by nearly 1 pp to 7.4%.

• Net result was negative, impacted by a PLN -17.3 million balance on financial activities and income tax.

• Operating profit (EBIT) increased by PLN 22.1 million year-over-year (adjusted for one-offs).

• Net debt/EBITDA LTM improved to -2.4 at year-end, reflecting a strong cash position.

Outlook and guidance

• Anticipates growth in residential construction, supported by a 14% year-over-year increase in building permits.

• Plans to optimise and commercialise own RES project backlog, expand energy storage, and maintain gross margin of 9-11%.

• Further integration and acquisitions in industrial services in Poland and Germany are targeted.