Friedrich Vorwerk Group (VH2) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered record revenue of €117.4 million, up 27% year-over-year, driven by major projects and robust market demand.

• H1 2024 revenue reached €194.1 million, a 17.2% increase year-over-year, 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, supported by major new project wins.

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

• Dividend of €0.12 per share for FY 2023 was approved and paid in June 2024.

Financial highlights

• Q2 2024 EBITDA increased 121% to €17.7 million, with a 15.1% margin; H1 2024 adjusted EBITDA rose 80% to €24.4 million (12.6% margin).

• Q2 2024 EBIT rose to €12.6 million (10.7% margin); H1 2024 adjusted EBIT increased to €14.5 million (7.5% margin).

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

• Equity ratio at 56.4% as of June 30, 2024, indicating a strong balance sheet.

• Net cash position turned negative to €-12.3 million due to investments and working capital needs.

Outlook and guidance

• Full-year 2024 revenue is now expected to exceed €410 million, with EBITDA margin forecasted at the upper end of the 11–13% range.

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

• H2 revenue growth will be led by the electricity segment, with district heating also contributing.

• Group margin for H2 is expected to be in line with H1, with stable profitability from major projects.