GomSpace Group (GOMX) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw order intake surge 779% year-over-year to T.SEK 199,233, with a strong order backlog and improved contribution margins.

• Revenue grew 31% to T.SEK 65,935 in Q2, while gross margin improved to 38% from -30% a year ago.

• Operating loss (EBIT) narrowed to T.SEK -8,356 from T.SEK -36,114 in Q2 2023; EPS was negative SEK 0.07, improved from negative SEK 0.25.

• Free cash flow turned positive at T.SEK 6,564 in Q2, reflecting better cash collection and working capital management.

• The Programs Business Unit secured major contracts, including with a new Singapore customer and Unseenlabs, while North America won a Pentagon contract via SAIC.

Financial highlights

• Q2 order intake: T.SEK 199,233 (+779%); H1 order intake: T.SEK 256,345 (+380%).

• Q2 revenue: T.SEK 65,935 (+31%); H1 revenue: T.SEK 116,097 (-10%).

• Q2 gross margin: 38% (up 68 pp); H1 gross margin: 31% (up 36 pp).

• Q2 EBIT: T.SEK -8,356 (improved 77%); H1 EBIT: T.SEK -30,555 (improved 39%).

• Q2 free cash flow: T.SEK 6,564 (vs. -27,849); H1 free cash flow: T.SEK -5,489 (vs. -70,254).

Outlook and guidance

• Guidance for positive free cash flow in H2 2024 is maintained, supported by strong Q2 results and order backlog.

• Revenue for 2024 is expected to surpass 2023's record, contingent on execution of backlog and increased product orders.

• Focus remains on cost control, margin improvement, and executing satellite programs.