Loihde (LOIHDE) Q3 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year in Q3 2024 to €31.5 million, driven by security and network services despite a challenging market environment.

• Adjusted EBITDA for Q3 2024 was €2.9 million, stable compared to last year, representing a 9.3% margin.

• Security and enterprise network services showed strong growth, while IT consulting revenue continued to decline due to market oversupply and price competition.

• Ongoing digitalization projects and new industrial clients focused on automation and AI, with increased interest in data and AI solutions in manufacturing and finance.

• Market conditions remain challenging, with cautious customer spending and increased price competition in IT consulting.

Financial highlights

• Q3 2024 revenue was €31.5 million, up from €29.9 million in Q3 2023; Q1–Q3 revenue reached €99.9 million, up 5% year-over-year.

• Q3 Adjusted EBITDA was €2.9 million (9.3% margin), and Q1–Q3 Adjusted EBITDA was €7.1 million (7.1% margin).

• Q3 EBITDA was €2.8 million; Q1–Q3 EBITDA was €6.4 million, up from €3.2 million year-over-year.

• Profitability improved year-over-year due to efficiency gains, but growth has leveled off.

Outlook and guidance

• 2024 revenue expected to be at or slightly above previous year’s level, with adjusted EBITDA projected to improve from €7.6 million in 2023.

• Growth expectations for the rest of 2024 are cautious due to market conditions and front-loaded project revenue.

• Long-term target for 2027: €200 million revenue and 15% adjusted EBITDA margin.