ErreDue (RDUE) H2 2024 earnings summary

Executive summary

• Revenue remained resilient at €15.9 million, down 3.7% year-over-year, supported by a 26% surge in hydrogen system sales despite a challenging macroeconomic environment.

• Orders for both alkaline and PEM hydrogen generators increased, with a backlog of €22.5 million at year-end, 80% of which is scheduled for 2025.

• Strong investments in development and operational structure were made to maintain technological leadership and support future growth.

• The company maintains a robust capital structure, with equity at €32.2 million and positive net cash of €17.3 million.

Financial highlights

• EBITDA was €5.1 million (32.0% margin), down from €5.9 million (35.7%) year-over-year, mainly due to higher operating costs and product mix shift.

• Net profit reached €2.7 million, compared to €3.4 million in the previous year.

• Value of production was €19.1 million, nearly flat year-over-year.

• Proposed dividend of €0.16 per share, with a yield of 1.95% and payout ratio of 36.96%.

Outlook and guidance

• Backlog of €22.5 million, with 80% related to 2025, underpins strong growth expectations for the coming year.

• Energy transition market drives backlog, with 60% of machines sold to this sector.

• Ongoing international conflicts and sector contractions may impact future results, especially in metal, automotive, and textile industries.

• Italy's National Hydrogen Strategy and PNRR grants support continued expansion in hydrogen solutions.