Kontron (SANT) H1 2024 earnings summary

Executive summary

• Q2 2024 EBITDA grew to €46.5m from €31.3m year-over-year, and revenue rose 52.9% to €423.8m, with 6.1% organic growth.

• H1 2024 revenue increased 44.6% to €779.9M, driven by organic growth and Katek consolidation.

• Profitability increased to €21.6m in Q2; gross margin reached 42.5%.

• Order intake was robust, with a book-to-bill ratio of 1.29 and backlog reaching €2bn.

• Integration of Katek completed, workforce expanded to 7,688 FTEs.

Financial highlights

• Q2 2024 revenue grew 52.9% year-over-year to €423.8m; H1 2024 revenue up 44.6% to €779.9m.

• Q2 EBITDA increased 48.6% to €46.5m; H1 EBITDA up 34.5% to €82.0m.

• Q2 operating net income after NCI was €21.6m (EPS €0.35, up 16.7%); H1 net result after NCI €37.9m.

• Q2 operating cash flow (adjusted) improved to €17.0m; H1 operating cash flow (adjusted) €40.8m.

• Equity ratio declined to 33.7% (Dec 2023: 44.1%) and net debt reached €209.8M.

Outlook and guidance

• 2024 revenue guidance of ~€1.9bn, representing ~50% year-over-year growth.

• 2024 EBITDA expected at €190m, up 50% year-over-year; adjusted net income target €100m.

• Further earnings growth anticipated in 2025 after full Katek integration and IoT upgrades.

• Organic growth expected to remain stable at 10% despite mixed end-market conditions.

• Market downturn in photovoltaics expected to be offset by increased demand in defense and railway sectors.