Landi Renzo (LNDR) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 declined 10.6% year-over-year to €197.7M, mainly due to negative dynamics in the automotive sector and macroeconomic/geopolitical instability, with both Green Transportation and Clean Tech Solutions segments declining.

• Net loss was €27.3M, a slight improvement from €28.6M loss in 2023.

• Clean Tech Solutions showed a Q3 order upturn, especially in hydrogen and biomethane, supporting a strong order backlog for 2025.

• A major financial optimisation project, including a capital increase and debt rescheduling, was launched to stabilise the Group's financial structure.

• Macroeconomic and geopolitical instability, including the Russia-Ukraine and Israel-Hamas conflicts, negatively impacted sales and operations.

Financial highlights

• Revenues: €197.7M for 9M 2024, down from €221.1M in 9M 2023; Q3 2024 revenue was €58.6M, down 15.5% year-over-year.

• Adjusted EBITDA: -€1.7M (vs. €4.6M in 2023); EBITDA: -€5.9M (vs. -€1.1M); EBIT: -€17.7M (vs. -€13.9M).

• Net result: -€27.3M (vs. -€28.6M); Basic EPS: -€0.1140 (vs. -€0.1232).

• Net Financial Position (NFP): -€127.8M at 9M 2024, deteriorating from -€112.4M at FY 2023.

• Free cash flow was -€27.5M for the nine months, with operational cash flow at -€19.5M.

Outlook and guidance

• Full-year 2024 performance is expected to be down versus 2023, with Green Transportation segment revenues and profitability lower due to a slowdown in profitable channels.

• Clean Tech Solutions segment expected to close 2024 with a strong order backlog, supporting 2025 production.

• Financial strengthening plan, including a capital increase of up to €45M, is expected to be completed by year-end.

• Second phase of capital increase (€25–30M) expected, not yet reflected in 9M 2024 figures.