Lesico (LSCO) Q4 2024 earnings summary

Executive summary

• Revenue grew 29.7% year-over-year to ₪1,042.7 million, driven by increased activity in Israel and improved performance in the US subsidiary.

• Net income attributable to shareholders rose 84% to ₪16.5 million, with EBITDA up 34% to ₪40.9 million.

• Gross margin decreased to 7.4% from 8.6% due to a loss in a subsidiary project, but overall profitability improved.

• The company maintained strong liquidity, with cash and equivalents at ₪118.1 million and positive working capital of ₪153.3 million.

• Dividend of ₪3 million was distributed in 2024, and all Series A bonds were fully repaid.

Financial highlights

• Revenue: ₪1,042.7 million (up 29.7% YoY); Gross profit: ₪77.1 million (up 11.2%).

• Operating profit: ₪28.8 million (up 96.7%); Net income: ₪16.5 million (up 84%).

• EBITDA: ₪40.9 million (up 34%); EPS: ₪0.39 (up from ₪0.18).

• Cash flow from operations: ₪29.8 million; Capex: ₪8.3 million.

• Cash and equivalents: ₪118.1 million; Net debt: low, with strong coverage ratios.

Outlook and guidance

• Management expects continued uncertainty and slower project execution in 2025 due to ongoing regional conflict and macroeconomic volatility.

• Despite challenges, the company sees potential for increased infrastructure demand and is positioned to benefit from government spending on reconstruction.

• No material deterioration in financial strength is expected, supported by cash reserves and positive working capital.