Ion Beam Applications (IBAB) H1 2024 earnings summary

Executive summary

• Group revenues rose 21.9% year-over-year to €206.5 million, driven by accelerated backlog conversion and strong service growth across all businesses.

• Net loss narrowed to €10.3 million from €27.3 million in H1 2023, reflecting improved margins and operational performance.

• Gross margin improved to 33.8% from 26.6% last year, mainly due to higher-margin mix in industrial business, Proton Therapy, and project cost normalization.

• REBIT reached breakeven at €0.04 million, a significant improvement from the prior year.

• Healthy balance sheet with €60.2 million gross cash, €21.7 million net cash, and €60 million undrawn credit lines.

Financial highlights

• Group order intake was €113.9 million; backlog remains high at €1.4 billion, supporting future revenue visibility.

• Operating cash flow was negative €50.7 million, mainly due to inventory build-up and supplier downpayments for large contracts.

• CapEx for H1 was €4.4 million, in line with guidance; full-year CAPEX expected at €10–12 million.

• Dividend of €0.17 per share paid in June 2024.

• All bank covenants were met, and the balance sheet remains solid.

Outlook and guidance

• Mid-term guidance reiterated: 15% CAGR 2022–2026 on revenues, aiming to nearly double revenues and reach ~10% REBIT margin by 2026.

• H2 is expected to outperform H1, with more backlog conversion and top-line growth.

• CAPEX to remain at €10–12 million per year through 2026 to support growth and innovation.

• Backlog conversion expected to accelerate, especially in proton therapy and other accelerators.

• Revenue and profit expected to show second half weighting, with continued improvement in REBIT and gross margin.