Lesico (LSCO) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 increased by 27% year-over-year to ₪803.7 million, with Q3 revenue up 47.7% to ₪307.7 million compared to Q3 2023.

• Net income for the first nine months reached ₪16.5 million (2.1% margin), nearly doubling from ₪8.7 million (1.4%) in the prior year; Q3 net income was ₪11.6 million (3.8% margin) versus a loss of ₪0.8 million in Q3 2023.

• EBITDA for the first nine months rose to ₪37.3 million from ₪26.4 million year-over-year; Q3 EBITDA was ₪21.0 million, up from ₪9.8 million.

• The company operates mainly in Israel, with additional projects in the US, Europe, and Africa, and maintains a strong order backlog of ₪1,527 million.

Financial highlights

• Gross profit for the first nine months was ₪61.9 million (8.0% margin), up from ₪53.7 million (8.7%) year-over-year.

• Operating profit for the first nine months was ₪26.9 million (3.5% margin), up from ₪10.3 million (1.7%) in the prior year.

• Cash and cash equivalents at September 30, 2024, totaled ₪136.2 million, up from ₪126.3 million at year-end 2023.

• Net cash from operating activities for the first nine months was ₪32.5 million, compared to negative ₪36.4 million in the prior year.

• Total assets stood at ₪698.5 million, with equity of ₪227.7 million (32.6% equity-to-assets ratio).

Outlook and guidance

• Management expects continued uncertainty and potential slowdown in Q4 2024 and early 2025 due to ongoing security and economic challenges in Israel.

• Despite challenges, the company sees potential for increased infrastructure demand post-conflict and continues to secure new projects.