INDUS (INH) Q3 2024 earnings summary

Executive summary

• Sales and EBIT declined 6.0% year-over-year across all segments due to challenging conditions, but both improved sequentially in Q3 2024, driven by Engineering and Infrastructure.

• Earnings per share rose to €1.89 from €1.60 year-over-year; earnings after taxes increased to €50.0 million.

• Free cash flow reached €71.9 million, in line with expectations.

• Four acquisitions completed in 2024, supporting portfolio expansion and profitable growth, especially in Engineering.

• EBIT forecast for FY 2024 reduced due to non-cash impairment expenses; free cash flow forecast remains above €110 million.

Financial highlights

• Group sales for 9M 2024 were €1,282.2 million, down 6.0% year-over-year; Q3 sales €443.1 million, down 3.6% year-over-year but higher than previous quarters.

• EBIT fell 18.0% to €95.9 million; adjusted EBITA dropped 21.2% to €117.6 million; Q3 EBIT was €31.8 million.

• Free cash flow decreased 32.2% to €71.9 million, impacted by lower income and a prior-year one-off gain.

• Net debt increased 11.2% to €562.8 million; equity ratio improved to 37.9%.

• Working capital rose 8.3% to €505.6 million; investments totaled up to €59.3 million, mainly in acquisitions.

Outlook and guidance

• Group sales for FY 2024 expected between €1.70–1.80 billion; EBIT guidance adjusted to €115–125 million (margin 7.0–8.0%) due to impairment charges.

• Free cash flow guidance confirmed at above €110 million.

• Engineering and Materials segments anticipate sharply declining EBIT; Infrastructure expects slight EBIT increase.

• Macroeconomic outlook for Germany remains negative, with no GDP growth expected in 2024; global growth forecast at 3.2%.