Mincon Group (MCON) Q4 2024 earnings summary

Executive summary

• Revenue from continuing operations declined 7–8% year-over-year to €145.9 million, with the largest impact in the Geothermal sector in Northern Europe and mining and waterwell/geothermal segments underperforming, while construction revenue remained flat due to APAC project wins.

• EBITDA from continuing operations was €16 million, down 24% year-over-year, mainly due to lower sales volume and pricing pressure, with H2 2024 showing recovery after a weak H1.

• Operating profit fell 38% to €5.5 million, and net profit dropped 55% to €1.8 million, reflecting challenging market conditions and the closure of Mincon Carbide.

• Significant operational improvements included a more efficient raw material supply chain, cost reductions, and operational restructuring.

• Entered 2025 with a strong order book and improved business confidence, supported by efficiency initiatives.

Financial highlights

• Revenue: €145.9 million in 2024, down 7–8% from €156.9 million in 2023.

• Gross margin: €40.1 million (27.5% margin), down from €45.5 million (29%) in 2023.

• EBITDA: €14.2–16 million (9.7–11% margin), down from €21.0 million (13.4%) in 2023.

• Operating profit: €5.5–7.6 million, down from €12.3 million in 2023.

• Net profit attributable to owners: €1.8 million, with basic EPS at €0.83 (2023: €3.52).

Outlook and guidance

• Market conditions are expected to improve in 2025 as inflation eases and interest rates unwind, especially in construction and geothermal markets.

• EPS and ROCE are projected to improve in 2025 due to enhanced competitiveness and increased manufacturing capacity.

• Focus remains on operational efficiency, working capital management, and cost reduction.

• Ongoing optimisation of the supply chain and inventory management will further strengthen competitiveness.

• Ongoing innovation in product efficiency and sustainability, with key projects like Greenhammer and Subsea progressing.