Exel Composites (EXL1V) Q3 2024 earnings summary

Executive summary

• Revenue and operating profit increased significantly year-over-year in Q3 2024, with a 19.7% revenue rise and a return to positive operating profit, reflecting progress in the turnaround plan.

• Order backlog strengthened, up 7.3% year-over-year, with major new customer engagements in the wind power sector.

• Strategic review and consultation process for potential closure of the Oudenaarde, Belgium factory was completed and launched.

• Strategic focus advanced on larger customers, high-growth industries, and volume business, with new wind power contracts secured.

• Commissioning of a new factory in India is on track for Q4 2024, expected to serve global wind power customers from 2025.

Financial highlights

• Q3 2024 revenue grew by 19.7% year-over-year to EUR 24.6 million; Q1–Q3 2024 revenue was EUR 74.5 million (-0.3% year-over-year).

• Q3 2024 operating profit was EUR 0.6 million (Q3 2023: -0.7 million); adjusted operating profit was EUR 0.7 million (Q3 2023: -1.2 million), with margin improving to 2.9% from -5.9%.

• Order intake for Q1–Q3 2024 increased by 2.0% year-over-year; Q3 order intake was 8% lower year-over-year.

• Net cash flow from operating activities Q1–Q3 2024 was EUR -1.3 million (Q1–Q3 2023: 3.7 million).

• Interest-bearing liabilities reduced by 38.1% year-over-year to EUR 31.3 million.

Outlook and guidance

• Guidance for 2024 is unchanged: revenue and adjusted operating profit are expected to increase significantly versus 2023.

• Profitability is expected to further improve with higher utilization rates and ramp-up of new customer products.