Global Dominion Access (DOM) Q3 2024 earnings summary

Executive summary

• Announced divestment of the Spanish maintenance service unit to Grupo Serveo and Portobello Capital for EUR 27.5 million, aligning with the 2023/2026 strategic plan to simplify operations and focus on higher-margin, sustainability-driven activities.

• Organic revenue grew 5% year-over-year for the first nine months of 2024, with turnover reaching €856.3M.

• EBITDA increased by 7% year-over-year to €107.5M, with a record margin of 12.5%, and EBIT rose 9% to €58.6M.

• Net attributable profit was €20.1M, down 26% year-over-year, mainly due to higher financial expenses and FX losses.

• Transformation and simplification process included divestment of lower value businesses and elimination of B2B2C activities.

Financial highlights

• Turnover increased 1% year-over-year to €856.3M for the first nine months of 2024, with organic sales growth of 5%.

• EBITDA margin rose to 12.5% (up from 11.8%), and EBIT margin improved to 6.8% (up from 6.3%).

• Net income margin was 3.1% (down from 3.3%), with attributable net income at €20.1M, down 26%.

• 2023 results included negative one-offs from B2B2C restructuring (-€6.5M).

• Contribution margin reached a record 15%.

Outlook and guidance

• Reaffirmed guidance for at least €150M in recurrent EBITDA for the year.

• Organic growth in Sustainable Services exceeded guidance targets, driven by strong segment positioning.

• Management expects margin and profitability improvements as project execution in renewables and other segments accelerates.

• Future growth visibility is strong, with a current project portfolio of €628M and expectations for normal execution levels to resume.

• Backlog for 360º Projects increased, supported by new industrial contracts.