Interpump Group (IPA) Q4 2023 earnings summary

Executive summary

• FY2023 sales rose 7.8% to €2,240.0m, including 6.9% organic growth; EBITDA increased 9.0% to €536.7m, with a record 24.0% margin

• Free cash flow reached €147.9m, the second-highest year on record, while net financial position improved to €486.5m from €541.8m at year-end 2022

• Q4 sales fell 2.5% to €519.6m and EBITDA declined 12.7% to €111.1m as Hydraulics normalization accelerated and Water-Jetting sales mix weighed on margins

Financial highlights

• FY revenue was €2,240.0m, up 7.8%; growth was 6.9% at the same perimeter and exchange rates

• FY EBITDA was €536.7m, up 9.0%; EBIT was €428.8m, up 11.7%, and net profit was €277.5m, up 2.9%

• Q4 revenue was €519.6m, down 2.5%; EBITDA was €111.1m, down 12.7%, and net profit was €37.0m versus €55.0m

• FY free cash flow was €147.9m versus €51.1m in 2022; trade working capital cash absorption fell to €27m from €195m

Outlook and guidance

• FY2024 turnover is expected to be stable at unchanged perimeter and exchange rates, with profitability focused on defending FY2023 results

• Guidance calls for flat organic sales, margin protection and continued material cash-flow improvement, supported by TWC and CAPEX normalization

• The 2023–25 commitment targets 25% sales growth from 2022, EBITDA margin above 22% and leverage of 1.0x–1.5x