Green Hydrogen Systems (GREENH) Q3 2024 TU earnings summary

Executive summary

• René Umlauft appointed CEO effective November 1, 2024, bringing significant restructuring and transformation experience; Michael Kaalund named CFO, also effective November 2024.

• Major cost-out and restructuring program launched, targeting a 40-50% reduction in production and operational costs.

• Strategic shift to focus exclusively on the X-Series, with A-Series sales discontinued and deliveries to be completed by Q1 2025.

• Seeking up to DKK 300 million in new capital to address covenant breaches and capital depletion risk.

Financial highlights

• Q3 2024 revenue was DKK 33.7 million; year-to-date revenue reached DKK 66.2 million, up from DKK 16-17 million year-over-year.

• EBITDA for Q3 2024 was DKK -191.5 million, with an EBITDA margin of -289%.

• Net loss for Q3 2024 was DKK -296.6 million.

• CapEx for Q3 2024 YTD was DKK 99.4 million, down from just below DKK 200 million last year.

• Cash and cash equivalents at quarter-end were DKK 57.6 million; solvency ratio stood at 27%.

Outlook and guidance

• 2024 revenue guidance set at DKK 105-145 million.

• 2024 EBITDA guidance (excluding restructuring): DKK -260 to -220 million; including restructuring: DKK -400 to -300 million.

• CapEx guidance for 2024 is DKK 130-160 million.

• Mid- and long-term targets suspended, with updates expected at the 2024 Annual Report.