LapWall (LAPWALL) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased by 12% year-over-year to €21.1 million, with EBITA margin at 10.1% and EPS at €0.10.

• 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 is progressing as planned, aiming to triple unit capacity by late 2025.

• Major project for Metsä Wood’s LVL factory in Äänekoski progressed on schedule and will be completed early autumn 2024.

• Order intake for H1 2024 was €19.9 million, but order backlog declined to €15.8 million from €23.0 million year-over-year, reflecting normalization after a large prior-year project.

Financial highlights

• Q2 2024 revenue grew 14.6% year-over-year to €11.0 million; EBITA up 42% to €1.1 million.

• H1 2024 EBITDA was €2.8 million (13.1% margin), EBITA €2.1 million (10.1% margin), and net profit €1.4 million.

• Cash at period end was €4.1 million; equity ratio 59.3%; net gearing -18.8%.

• Dividend paid: €0.13/share in March 2024; policy targets payout of 30–50% of annual profit.

• H1 2024 ROE: 17.3% (vs. 16.3% y/y); operating cash flow: €773k (vs. -€82k y/y); investment cash flow: €1.17 million (vs. -€3.39 million y/y).

Outlook and guidance

• 2024 revenue guidance is €43–48 million (vs. €41.9 million in 2023), with EBITA expected at €4.3–4.8 million.

• Tender pipeline at €50 million, but order backlog at June 2024 was €15.8 million, down from €23 million a year earlier.

• 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.