LU-VE (LUVE) Q4 2024 earnings summary

Executive summary

• FY2024 sales declined by 4.6% year-over-year to €589.1M, mainly due to a sharp drop in heat pump sales; excluding HP, sales grew by 2.5%.

• Adjusted EBITDA rose 4.7% to a record €82.5M (14.0% margin), with margin improvement driven by cost controls, automation, and operational efficiency.

• Order book/backlog increased 11.5% versus December 2023, signaling improved demand and future growth.

• Net financial position improved by €28.8M to €97.5M, with leverage reduced to 1.2x EBITDA and liquidity at €316.1M.

• Strategic investments in new plants in China and the USA, and a proposed dividend of €0.42 per share.

Financial highlights

• FY2024 sales: €589.1M (-4.6% YoY); adjusted EBITDA: €82.5M (+4.7% YoY, 14.0% margin); EBIT: €50.6M (+8.9%, 8.6% margin).

• Adjusted net income: €41.3M (7.0% of sales); adjusted net profit: €37.4M (6.4% of revenues); net profit: €35.8M (+14.2%).

• Net cash generation from operations: €56.4M (9.6% of sales); operating working capital reduced to €95.7M (16.3% of sales).

• Net financial debt at €97.5M, down from €126.3M in December 2023.

• Strong improvement in net financial charges (-65% YoY).

Outlook and guidance

• Focus on datacenter and industrial projects, automation, and supply chain optimization.

• Sales expected to accelerate in H2 2025, driven by demand in data centers, commercial refrigeration, and refrigerated transport.

• Second stage of plant expansion in China completed; US expansion ongoing, with new plants operational in Q1 2025 (China) and Q1 2026 (USA).

• Anticipates market recovery in heat pumps and nuclear applications from H2-2025.

• Continued search for M&A opportunities with strategic rationale.