GomSpace Group (GOMX) Q2 2024 earnings summary

Executive summary

• Achieved positive free cash flow in Q2 2024, reversing prior losses, with figures reported at SEK 6.6 million and 7 MSEK, and a significant turnaround from -28 MSEK in Q2 2023.

• Order backlog surged 85% year-over-year to SEK 299 million, driven by major new contracts in microsatellites and international markets.

• Revenue for Q2 2024 reached SEK 66 million (T.SEK 65,935), up 31% year-over-year, with gross margin improving to 38% from -30% a year ago.

• Notable progress in North America and Asia, with key contracts in Singapore and Indonesia, and recognition by EIFO for export financing.

• Guidance for positive free cash flow in the second half of 2024 is maintained.

Financial highlights

• Q2 2024 free cash flow was positive at SEK 6.6 million (7 MSEK), compared to -28 MSEK in Q2 2023.

• Cash position improved to SEK 51 million (T.SEK 51,069) from SEK 46 million in Q1 2024.

• Order intake reached SEK 199 million (T.SEK 199,233), up 779% year-over-year.

• Revenue for H1 2024 was SEK 116 million; full-year revenue expected to surpass 2023’s record SEK 236 million.

• EBIT improved to SEK -8 million (T.SEK -8,356), a significant reduction in losses year-over-year.

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 exceed last year’s record, contingent on execution of backlog and increased product orders.

• Profitability is anticipated as revenue grows, but the immediate focus remains on cash flow and order intake.