Groupe Airwell (ALAIR) H1 2024 earnings summary

Executive summary

• Revenue declined 20.8% year-over-year to €25.7m in H1 2024 amid a depressed heat pump market, especially in new construction and renovation.

• Mainland France revenue grew 4.3% to €16.0m, offsetting sharp declines in overseas (-44.6%) and international (-43.1%) regions.

• Gross margin improved by 7 points to 38.4%, reflecting a favorable regional mix and margin management.

• Investments increased in new offerings ("Ma Maison Hybride", "Leezy", "Airwell Industrie"), impacting profitability.

• Net loss reached €0.8m versus a €1.0m profit in H1 2023; EBITDA was nearly breakeven at -€0.2m.

Financial highlights

• Revenue: €25.7m (down 20.8% year-over-year); France accounted for 62% of total.

• Gross margin: €9.9m (38.4% of revenue), up from 31.1% in H1 2023.

• EBITDA: -€0.2m (vs. €1.8m in H1 2023); EBIT: -€0.4m (vs. €1.6m in H1 2023).

• Net loss: -€0.8m (vs. €1.0m profit in H1 2023); EPS: -€0.12 (vs. €0.22 in H1 2023).

• Operating expenses rose 20.2% to €9.9m, driven by new launches and expanded scope.

Outlook and guidance

• Sequential revenue improvement expected in H2 2024, with performance seen comparable to H2 2023.

• Market recovery anticipated in 2025, targeting revenue above €100m and EBITDA margin over 5%.

• Continued OPEX investments in smart home and R&D offerings; new energy renovation financing offer to launch in September.