Innovatec (INC) H1 2024 earnings summary

Executive summary

• H1 production value was €111.7m, up 16% YoY; EBITDA reached €15.2m, up 28%, while Group net loss narrowed to €1.4m from €2.7m. Comparisons are affected by changes in consolidation scope.

• Results were led by Environment & Circular Economy; Energy Efficiency & Renewables remained exposed to regulatory uncertainty and delayed solar-project permits.

• The September-approved demerger is intended to separate the two business units into separately focused listed entities; Haiki + was expected to list on EGM in early 2025.

Financial highlights

• Production value €111.7m vs €96.6m YoY; characteristic revenue €104.4m vs €92.2m.

• EBITDA €15.2m vs €11.9m; reported EBITDA margin 13.6% vs 12.3%.

• EBIT €3.9m vs €2.3m; pretax result €0.5m vs a €1.4m loss; Group net loss €1.4m vs €2.7m.

• Net financial expenses were €3.3m; income taxes €1.1m. Financial expenses included a €0.4m loss on the disposal of Innovatec Power.

• Operating cash flow was €13.7m; H1 capex was €11.5m, while M&A investment was €23.9m.

Outlook and guidance

• The 2024–2026 business plan is no longer considered achievable; separate 2025–2027 plans were scheduled for market presentation in October and November 2024.

• A monthly cash plan through December 2025 projected positive cash throughout and net cash generation over 18 months, including a downside case without a pending bank facility.

• Renewables strategy shifts toward project sales before or after construction, turnkey delivery and asset management, with reduced reliance on incentives.

• Environment & Circular Economy plans to expand treatment capacity, geographic reach and internalized waste volumes while integrating recent acquisitions.

• The renewables pipeline exceeded 300 MWp, including 20.4 MWp authorized; management expected at least 100 MW of the pipeline to obtain authorization by early 2025.