LapWall (LAPWALL) Q2 2024 earnings summary

Executive summary

• Revenue grew 12% year-over-year to €21.1 million in H1 2024, with EBITA up 10% and EBIT up 2% despite challenging market conditions.

• Strong growth in roof element sales offset a decline in wall element demand due to weak residential construction.

• Major €19 million investment in Pyhäntä factory progressing as planned, aiming to triple unit capacity and support future growth.

Financial highlights

• Q2 2024 revenue: €11.0 million (+15% y/y); EBITA: €1.1 million (+42% y/y); EBIT: €0.89 million (+42% y/y).

• H1 2024 revenue: €21.1 million (+12% y/y); EBITA: €2.13 million (+10% y/y); EBIT: €1.69 million (+2% y/y); EPS: €0.10 (vs. €0.09 y/y).

• EBITDA margin H1: 13.1% (vs. 13.7% y/y); EBITA margin: 10.1% (vs. 10.2% y/y); EBIT margin: 8.0% (vs. 8.8% y/y).

• Order backlog at period end: €15.8 million (vs. €23.0 million y/y), reflecting normalization after a large prior-year project.

• Cash at period end: €4.1 million (vs. €2.2 million y/y); equity ratio: 59.3%; net gearing: -18.8%.

Outlook and guidance

• 2024 revenue guidance: €43–48 million (vs. €41.9 million in 2023); EBITA guidance: €4.3–4.8 million (vs. €4.0 million in 2023).

• Order backlog covers about four months of work; public, industrial, and commercial construction remain stable, while residential shows early signs of recovery.

• Strategic focus on expanding wall element use to reduce residential market volatility impact.