Kontron (SANT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 44.9% to €427.7m, EBITDA up 70.1% to €59.4m, and 9M 2024 revenue rose 44.7% to €1,207.7m, driven by IoT and Software + Solutions.

• Profitability increased to €24.4m in Q3; 9M 2024 net income was €62.3m, EPS up 17.4% to €1.01.

• Order intake was robust, with a book-to-bill ratio of 1.21 and backlog at €2.1bn.

• Katek acquisition expanded offerings in energy management and increased employee count.

• Share buyback program for 2024 completed.

Financial highlights

• Q3 2024 revenue up 44.9% to €427.7m; EBITDA up 70.1% to €59.4m; gross margin improved to 44.7%.

• 9M 2024 revenue rose 44.7% to €1,207.7m; EBITDA reached €141.4m.

• Net income for 9M 2024 was €62.3m; EPS (undiluted) €1.01.

• Operating cash flow (adjusted) for 9M 2024 was €68.8m, up 101.8%.

• Net debt stood at €217.8m as of September 30, 2024.

Outlook and guidance

• 2024 guidance targets ~50% revenue growth to €1.8bn and EBITDA of at least €190m.

• Net income expected to grow 33% year-over-year (adjusted).

• Strong order backlog of €2,056m and book-to-bill ratio of 1.21.

• Growth expected from IoT, AI, and security solutions aligned with NIS2 standards.

• Significant cash improvement expected in Q4.