Merus Power (MERUS) H1 2024 earnings summary

Executive summary

• Net sales for January–June 2024 were €6.7M, down 50.8% year-over-year, with profitability remaining poor despite record order intake.

• EBITDA was -€3.4M and EBIT was -€4.0M, both significantly lower than the previous year.

• Earnings per share fell to -€0.56 from -€0.11 year-over-year.

• Order intake reached €39.7M, up 61.3% year-over-year, with major new energy storage contracts secured.

• Growth is expected to concentrate in the second half of the year due to timing of deliveries.

Financial highlights

• Net sales: €6.7M (down 50.8% year-over-year).

• EBITDA: -€3.4M (was -€0.4M year-over-year), -51.0% of net sales.

• EBIT: -€4.0M (was -€0.7M year-over-year), -60.1% of net sales.

• Profit/loss for the period: -€4.3M (was -€0.8M year-over-year).

• Equity per share: €1.02 (down from €1.58 year-over-year).

• Operating cash flow: €5.6M (improved from -€1.3M year-over-year).

Outlook and guidance

• Full-year net sales expected to increase, but EBITDA guidance was lowered to negative €0–1M.

• Growth in net sales is expected to be driven by energy storage and industrial power quality deliveries in H2.

• Market outlook for energy storage remains positive, with strong growth anticipated.