Innovatec (INC) H1 2023 earnings summary

Executive summary

• H1 2023 operating performance remained positive, but production value fell 40.8% YoY to €96.6m; EBITDA was €11.9m and net group result was a €2.7m loss.

• Results reflected reduced Ecobonus 110% activity and weaker volumes in energy-intensive customer sectors; Ambiente & Circular Economy profit contribution partly offset Energy Efficiency losses.

Financial highlights

• Production value €96.6m, down 40.8% YoY; EBITDA €11.9m vs €22.4m; EBIT €2.3m vs €14.1m.

• Net financial charges were €3.2m vs €0.3m; net group result was -€2.7m vs +€8.5m, including €1.5m of Ecobonus credit-transfer costs.

• Operating costs included €2.0m of Ecobonus-related passive adjustments and €0.7m of net non-recurring Group charges.

• Cash at June-end was €19.0m vs €10.0m at Dec. 2022; adjusted net debt was €38.7m, excluding €21.5m of Ecobonus credits in the tax drawer.

Outlook and guidance

• FY23 guidance reiterated: EBITDA €28m, with revenue forecast at ~€250m; the 2024–26 plan targets 2026 revenue €479m, EBITDA €66m, 14% EBITDA margin and EBIT €46.1m.

• 2024–26 plan envisages €77m investment, including €59m in plant and technology and €19m in M&A; net debt target is €4m by 2026.

• Growth priorities include circular-economy plant capacity, lithium-battery recycling, B2B/public-sector efficiency projects and solar development; photovoltaic pipeline cited at ~450 MWp.

• Plan proposes free warrants for shareholders, with a capital increase of up to €8m, and a dividend proposal of up to €10m from cash generated by 2026.