Global Dominion Access (DOM) Q2 2024 earnings summary

Executive summary

• Turnover for H1 2024 was €571.4M, flat year-over-year, with 4.7% organic growth offset by negative inorganic and FX effects; strategic transformation focused on renewables, business simplification, and margin improvement.

• EBITDA reached €71.3M (12.5% margin), stable year-over-year and above 12% for the third consecutive quarter.

• Attributable net income was €16.3M, down 30% year-over-year, mainly due to higher financial expenses from increased debt and interest rates.

• Strategic focus on sustainable services and 360º projects, with continued investment in renewables and divestment of less efficient activities.

• CEO highlights progress in business simplification and margin improvement despite increased investment requirements.

Financial highlights

• EBITDA was €71.3M, with a 12.5% margin; EBIT increased 1% to €40.6M (7.1% margin); comparable net income fell 14% to €20.5M; attributable net income dropped 30% to €16.3M.

• Organic sales grew by 5% year-over-year, but overall growth was flat due to a 3.3% inorganic reduction and a 1.2% negative exchange rate effect.

• Net financial debt (total) increased to €198M, reflecting investments and share buybacks; net financial debt (ex-infrastructure) at €72.6M.

• Free operating cash flow was +€25M in H1 2024, including taxes and financial expenses.

• Dividend of €14.7M–€15M distributed in July 2024.

Outlook and guidance

• Management expects a stronger H2 with project execution recovery, especially in renewables and infrastructure.

• 2024 is anticipated to align with the strategic plan, maintaining organic growth and operating profitability; 2023–2026 plan focuses on simplification, recurrence, and sustainability.

• Management remains confident in achieving the €150M EBITDA target for 2024, with optimism for the second half.

• Organic growth in Sustainable Services exceeded guidance, reaching nearly 10% in Q2.

• Expects to resume stronger growth in 360° Projects after securing a European partner for new renewable parks in Spain and Italy.