Kongsberg Automotive (KOA) Q2 2024 earnings summary

Executive summary

• Q2 2024 EBIT reached €6.4M, up €18.9M from Q2 2023, driven by cost optimization and improved KPIs despite a challenging automotive market.

• Revenues declined 6.8% to €209.3M, with core business revenues at €175.3M, mainly due to lower volumes in Europe, partially offset by growth in the Americas.

• Book-to-bill ratio hit a record 2.1, with €695M in new business wins in Q2 and €1.1B in H1, up from €369M in H1 2023.

• Free cash flow was -€4.4M, positive when adjusted for accelerated bond interest payments; net interest-bearing debt rose to €116.5M.

• Issued €110M in new Nordic bonds, fully refinancing old Euro bonds and maintaining interest costs.

Financial highlights

• Q2 2024 revenues: €209.3M (down 6.8% year-over-year); EBIT: €6.4M (up from -€12.5M); net profit: €3.7M (vs. -€21.7M in Q2 2023).

• H1 2024 EBIT: €16.5M (up from -€8.9M); H1 revenues: €421.4M (vs. €453.3M in H1 2023).

• Free cash flow: -€4.4M, positive when adjusted for bond interest timing.

• Liquidity at quarter-end: €100.3M, with €85.8M in cash and €15M undrawn RCF.

• Adjusted EBIT in Q2: €7.9M (vs. €0.3M); adjusted EBITDA: €15.0M (vs. €8.7M).

Outlook and guidance

• 2024 full-year revenue guidance revised to €790–830M due to volume reductions in Europe and Asia and weakening in North America.

• EBIT guidance for 2024 set at €28–35M.

• New business wins guidance raised to above €1.5B and book-to-bill above 1.5 for the year.

• Ambitions for 2028: core business revenues above €1B and EBIT margin at or above 8.5%.

• Focus for H2 2024 includes cost optimization, manufacturing footprint assessment, and product portfolio development.