Landi Renzo (LNDR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue declined 8.3% year-over-year to €139.1M, mainly due to Clean Tech Solutions delays and lower orders, while Green Transportation remained stable with a shift toward higher-margin channels.

• Adjusted EBITDA dropped to €0.06M from €3.9M, with a gross operating loss (EBITDA) of €3.7M, impacted by €3.8M in non-recurring costs.

• Net loss for the Group was €18.5M, improving from €20.9M in H1 2023.

• Major financial restructuring, including a planned capital increase of up to €45M and debt rescheduling, was agreed in July-August 2024 to address liquidity and covenant breaches.

• Management highlighted a recovering trend in Q2 and ongoing implementation of an industrial plan supported by the capital increase.

Financial highlights

• Revenues: €139.1M in H1 2024 vs. €151.8M in H1 2023 (-8.3%).

• Adjusted EBITDA: €0.06M in H1 2024 vs. €3.9M in H1 2023; reported EBITDA margin -2.7%.

• EBIT: -€11.5M in H1 2024 vs. -€8.8M in H1 2023.

• Net result: -€18.5M in H1 2024 vs. -€20.9M in H1 2023; EPS: -€0.0743.

• Free cash flow was negative €24.1M, with cash absorption mainly from operations and investments.

Outlook and guidance

• 2024 is expected to close below 2023 levels, with Green Transportation stable or slightly lower and Clean Tech Solutions down due to project delays and market immaturity.

• Management focus is on executing business initiatives and completing financial strengthening to support future growth.

• Financial structure does not yet reflect the impact of the capital increase and debt rescheduling, expected to improve liquidity and reduce financial pressure by year-end.

• Major shareholder's contribution to the capital increase will be available in Q3 2024.