Koncar D&ST (KODT) Q2 2024 earnings summary

Executive summary

• Record performance in H1 2024 with all-time highs in revenue, net profit, EBITDA, and margins, driven by strong order intake and backlog, especially in power transmission and distribution.

• Export accounted for 73.4% of total sales, with significant growth in the EU, notably Germany, Sweden, and Austria.

• Major contracts include the Vidraru hydropower plant in Romania (~€80M) and a 420 kV transmission line in Norway (€14M).

Financial highlights

• Consolidated sales revenue reached €478.7M, up 25% year-over-year; operating income was €486.3M (+24.1%).

• Net profit surged 186.4% to €73.8M; EBITDA rose 146.3% to €90.5M; EBITDA margin improved to 18.9% from 9.6%.

• Operating profit (EBIT) was €79.4M (+189.3%); normalized EBIT margin at 16.1% (+10.2pp).

• Book-to-bill ratio at 1.8; order intake €866.2M (+15.8%); backlog €1.81B (+35.3%).

• Earnings per share reached €16.24, up 137% year-over-year.

Outlook and guidance

• Strong backlog and order intake support optimism for continued revenue and profit growth in coming periods.

• €1.16B of backlog scheduled for realization in 2025 and beyond; 2024 sales plan fully covered by existing orders.