Innovatec (INC) H2 2023 earnings summary

Executive summary

• FY23 revenue €215.5m, down 25% YoY, as Ecobonus 110% activity contracted; EBITDA was €28.8m, down 11%, while EBITDA margin improved to 13.4% from 11.2%.

• Net income attributable to shareholders was €0.1m versus €10.6m in FY22, reflecting higher financing costs, including Ecobonus credit-sale costs, and lower operating profit.

• Environmental and Circular Economy delivered stronger margins and EBITDA; Energy Efficiency and Renewables was affected by reduced Ecobonus work and the business repositioning.

Financial highlights

• Revenue was €215.5m versus €289.2m in FY22; Environmental and Circular Economy contributed €165.1m, down 6%, and Energy Efficiency €50.2m, down 55%.

• EBITDA was €28.8m versus €32.4m; EBIT was €12.0m versus €18.7m, and profit before tax fell to €3.0m from €16.8m.

• Net income attributable to shareholders was €0.063m versus €10.647m; consolidated net income including minorities was €0.210m versus €11.506m.

• Net financial charges rose to €8.8m from €1.6m, including €3.6m of net Ecobonus credit-sale costs; income taxes were €2.8m versus €5.3m.

• Operating cash flow was €6.4m; FY23 capex was €18.3m and M&A investment €6.7m.

Outlook and guidance

• The 2024–2026 plan targets revenue of €332m, €397m and €479m, respectively, and EBITDA of €40m, €53m and €66m; expected CAGRs are 30% for revenue and 32% for EBITDA.

• Plan EBT targets are €23.6m in 2024, €34.0m in 2025 and €46.1m in 2026; net financial debt is projected to fall to €4m by 2026 after debt repayment and investment outlays.

• Planned investments total ~€77m: €59m in capex and innovative recovery technologies and €19m in M&A; 137 additional employees are planned, taking headcount above 500.

• Up to €10m of cash generated by the plan may be proposed for shareholder dividends in 2026.

• The operating plan advances circular-economy assets, B2B/public-sector energy services and a 450 MWp solar pipeline; 10 MWp was authorized and ready to build at reporting time.