FACC (FACC) Q2 2024 earnings summary

Executive summary

• Revenue grew 24% year-over-year in H1 2024, reaching EUR 438.4 million, with all divisions expanding and Q1 marking the strongest quarter in company history.

• EBIT increased by over 51% to EUR 22.5 million, reflecting improved profitability.

• Order backlog remains robust, supported by strong demand in short/mid-haul and business jet segments, and a stable order backlog of USD 5.8 billion.

• Workforce expanded by 265 FTEs in H1 2024 to support ramp-up and global footprint expansion.

• Long-term partnerships with major aerospace manufacturers and new projects, including COMAC C919 and drone contracts, contributed to growth.

Financial highlights

• H1 2024 revenue reached EUR 438.4 million, up 24% year-over-year.

• Operating EBIT rose over 51% to EUR 22.5 million.

• Free cash flow improved to EUR 7.4 million, though high inventories continue to impact cash flow.

• EBITDA for H1 2024 was EUR 42.9 million, with net financial debt at EUR 217.6 million as of June 30, 2024.

• Development contracts in drone technology secured, valued at over USD 90 million through 2027.

Outlook and guidance

• Full-year 2024 revenue growth guidance of 10%-15% is confirmed, with H1 performance supporting this range.

• Management targets margin improvement, increased cash flow via inventory reduction, and efficiency gains to offset inflation.

• Q3 expected to be seasonally weaker due to customer shutdowns, with Q4 anticipated to rebound.

• Double-digit EBIT margin targeted by 2028, supported by efficiency and cost reduction initiatives.

• Continued investment in global manufacturing footprint and supply chain restructuring.