Konecranes (KCR) Q2 2024 earnings summary

Executive summary

• Achieved record-high comparable EBITA/EBITDA margin of 14.3% in all business segments for Q2 2024, driven by strong sales execution, volume leverage, and price management.

• Net sales increased 13% year-over-year to €1,031.5 million in Q2, with growth in EMEA and Americas, but a decline in APAC.

• Order intake was €968 million in Q2, down 11.5% year-over-year, but the highest in the last four quarters; order book at €2,987.1 million, providing a strong position for H2.

• Net profit for Q2 rose 76.2% year-over-year to €99.7 million, with EPS at €1.26.

• H1 2024 saw group sales rise 7.3% to €1,944.6 million, with net profit up 45.5% to €159.0 million.

Financial highlights

• Comparable EBITA/EBITDA reached €147.3 million in Q2, up 49.8% year-over-year, with a margin of 14.3%, an increase of 3.5pp.

• Free cash flow for Q2 was €21.5 million, down from €114.0 million in Q2 2023; H1 free cash flow was €70.3 million.

• Gearing improved to 26.8% from 43.2% a year ago; net debt/EBITDA (R12M) at 0.7x.

• Return on capital employed (R12M) exceeded 20%.

• Earnings per share (diluted) increased to €2.00 in H1 2024 from €1.38 year-over-year.

Outlook and guidance

• Net sales for 2024 expected to remain at or above 2023 levels, with upgraded guidance for improved comparable EBITA margin.

• Demand environment in industrial segments remains healthy and stable, though interest rates are causing longer decision times for large projects.

• Port segment pipeline remains strong, with large projects expected to move into decision-making in H2.