Exail Technologies (EXA) H2 2023 earnings summary

Executive summary

• 2023 order intake reached €324m, up 14% on a comparable scope; sales rose 16% to €323m, driven by Navigation & Maritime Robotics.

• H2 brought faster sales growth and significant cash generation, while tender activity and resource shifts weighed on profitability.

• 2024 outlook remained for double-digit growth; the 2025–2026 ambition of €500m sales and EBITDA margin above 25% was maintained.

Financial highlights

• Sales were €323m in 2023, up 16% from €278m on a like-for-like basis; current EBITDA was €65m, with a slight contraction in margin to just over 20%.

• Operating profit, the stated alternative performance indicator, was €40m versus €37m like-for-like; IFRS operating profit was €7m after non-cash and other charges.

• Net profit attributable to shareholders was €12m, including a €31m gain on disposal of former Protection Systems and Engineering activities.

• H2 sales grew 17%; EBITDA growth was described as insufficient relative to expectations.

Outlook and guidance

• 2024 sales growth forecast at double digits; Belgian-Dutch contract sales expected to remain stable YoY, with other activities growing strongly.

• Tender response and commercial intensity were expected to continue weighing on resources and profitability through at least H1 2024; 2024 seasonality expected to resemble 2023.

• Medium-term ambition of €500m sales and EBITDA margin above 25% by 2025–2026 remained in place, with timing leaning toward 2026.

• 2024 CapEx expected at roughly the 2023 level, without strong growth; R&D expenditure was indicated at €48.7m in 2023, of which €21m was capitalized.