Lechwerke (LEC) H2 2024 earnings summary

Executive summary

• Achieved a bereinigtes EBIT of €207.3m, the second-highest in company history, despite being below the prior year due to one-off effects.

• Net income (Jahresüberschuss) was €120.9m, with a proposed dividend of €2.80 per share.

• Continued strong focus on renewable energy, digitalization, and regional infrastructure, with significant investments in PV, grid, and digital projects.

• Completed major organizational changes, including the transfer of energy infrastructure assets to new subsidiaries.

Financial highlights

• Revenue (Umsatzerlöse) decreased by 19.9% to €1,230.7m compared to €1,536.8m in 2023, mainly due to lower energy prices and volumes.

• Bereinigtes EBITDA was €292.5m (down 0.2% year-over-year), and bereinigtes EBIT was €207.3m (down 8.2%).

• Net income (Jahresüberschuss) fell to €120.9m from €137.0m in 2023.

• Investments rose 19.1% to €268.8m, with a focus on grid, renewables, and digital infrastructure.

• Cash flow from operating activities was €111.0m, down from €209.9m in 2023, mainly due to working capital effects.

• Equity ratio improved to 31.9% from 29.9%.

Outlook and guidance

• For 2025, expects a bereinigter Jahresüberschuss (HGB) between €100m and €120m.

• Anticipates lower revenue due to the completed exit from the gas business and lower energy prices.

• Investment volume in tangible assets planned to decrease as new infrastructure projects shift to subsidiaries.

• Dividend expected to remain stable at €2.80 per share, subject to business performance and regulatory environment.