Glaston (GLA1V) Q2 2024 earnings summary

Executive summary

• Profitability in Q2 2024 was supported by strong growth in the service business, offsetting challenging markets and declines in order intake and net sales year-over-year.

• The company is transferring all pre-processing production from Switzerland to China to improve efficiency and achieve annual net cost savings of over €2 million by end of 2025.

• A new CEO, Toni Laaksonen, will start on August 12, 2024, bringing international and service business experience.

• The architectural glass market remained slow, but tempering market demand improved from Q1.

• Sustainability progress continued, with SBTi approval for emission reduction targets.

Financial highlights

• Q2 2024 order intake was €50.2 million, down 6–6.5% year-over-year, but improved sequentially from Q1.

• Q2 net sales were €49.9 million, a 10% year-over-year decline, mainly due to weakness in Architectural Technologies.

• Comparable EBITA/EBITDA margin improved to 6.6% in Q2, supported by a higher share of services.

• Services net sales grew 10% in Q2 and represented 38% of total net sales.

• APAC net sales grew 60% year-over-year, while Americas and EMEA declined.

Outlook and guidance

• Net sales for 2024 are expected to remain at 2023 levels, with comparable EBITA/EBITDA estimated at €14.5–16 million.

• Market recovery is delayed to late 2024 at the earliest; cost-saving actions are supporting profitability.

• Management expects order volatility to continue, with potential positive impact from the Glasstec trade show in Q4.