INDUS (INH) H2 2023 earnings summary

Executive summary

• Continuing-operations sales were €1,802.4 million in FY 2023, broadly level YoY; EBIT rose 11.9% to €149.6 million and EBIT margin increased to 8.3%.

• Adjusted EBITA was €188.1 million, down 3.2% YoY, with a 10.4% margin; FY EBIT included €19.3 million of impairment losses and €19.2 million of PPA depreciation.

• Free cash flow increased to €198.9 million, net debt fell to €506.2 million and net debt/EBITDA improved to 2.0x.

Financial highlights

• Revenue from continuing operations was €1,802.4 million versus €1,804.1 million in FY 2022; adjusted EBITA was €188.1 million versus €194.3 million.

• EBIT was €149.6 million versus €133.7 million; EBIT margin rose to 8.3% from 7.4%.

• Operating cash flow from continuing operations reached €240.1 million versus €137.1 million; free cash flow was €198.9 million versus €101.5 million.

• Working capital declined 6% YoY to €466.9 million; investments from continuing operations totaled €70.8 million, including €8.9 million in acquisitions.

Outlook and guidance

• FY 2024 revenue guidance is €1.85–1.95 billion, EBIT €145–165 million and EBIT margin 7.5–8.5%.

• FY 2024 free cash flow is forecast above €110 million; investment in property, plant and equipment and intangibles is guided at €75–85 million.

• Guidance includes two growth acquisitions plus further add-on acquisitions; net debt/EBITDA is expected at ~2.3x and working capital slightly above FY 2023.

• FY 2024 segment outlook: Engineering sales slightly higher and EBIT lower; Infrastructure sales slightly higher and EBIT strongly higher; Materials sales slightly lower and EBIT lower.

• FY 2025 targets include sales above €2 billion, EBIT margin above 10% and free cash flow above €110 million.