Friedrich Vorwerk Group (VH2) Q2 2024 earnings summary

Executive summary

• Achieved record revenue in Q2 2024, up 27% year-over-year to €117.4 million, driven by flagship projects like A-Nord and strong performance in electricity and pipeline segments.

• H1 2024 revenue grew 17.2% to €194.1 million, with significant profitability improvement and a tripling of adjusted EBIT.

• Order backlog reached a record €1.2 billion as of June 2024, up 160% year-over-year, supporting future growth and project execution.

• Workforce expanded by 7% in H1 2024 to support increased project activity.

• Completed key projects, including ETL 180, and secured major new contracts in electricity and natural gas infrastructure.

Financial highlights

• Q2 2024 EBITDA rose 121% to €17.7 million (margin 15.1%), and EBIT increased to €12.6 million (margin 10.7%).

• H1 2024 adjusted EBITDA reached €24.4 million (margin 12.6%), and adjusted EBIT nearly tripled to €14.5 million (margin 7.5%).

• Net profit after non-controlling interests was €9.6 million, up 201% year-over-year; EPS reached €0.48.

• Net debt reduced significantly compared to June 2023, but net cash position turned negative to €-12.3 million due to investments and working capital needs.

• Cash flow from operating activities was negative at €-31.8 million, mainly due to seasonal working capital build-up; liquidity reserve decreased to €10.4 million.

Outlook and guidance

• Revenue guidance raised to over €410 million for 2024, implying at least 10% growth year-over-year.

• EBITDA margin expected at the upper end of 11–13%, nearly five percentage points above prior year.

• Largest revenue contributions anticipated in 2025 and 2026 from major projects.

• Electricity segment to remain the main growth driver in H2, with district heating also contributing.

• H2 revenue and margin expected to be in line with H1, with seasonal strength in the second half.