MT Højgaard Holding (MTHH) Q2 2024 earnings summary

Executive summary

• Revenue increased by 8% year-over-year in the first half of 2024, with EBIT up 49%, mainly driven by MT Højgaard Danmark.

• Order intake reached its highest level in five quarters, up 16% year-over-year, supported by large infrastructure, energy, and housing projects.

• Strategic focus on energy renovations, sustainability, and Danish core business, with 27 projects under certification or pre-certification.

• Exit from Portugal and Africa completed; sales processes ongoing in Greenland; NemByg acquisition finalized.

• Danish operations showed robust growth, while international wind-down impacted overall financials.

Financial highlights

• Revenue for 1H 2024 was DKK 4,958 million, up from DKK 4,628 million in 1H 2023; EBIT for 1H 2024 was DKK 219 million, up from DKK 139 million; EBIT margin improved from 3.0% to 4.4%.

• Net result from continuing operations increased to DKK 152 million from DKK 89 million year-over-year.

• Cash flow from operations was negative DKK 97 million, mainly due to losses in discontinued operations and working capital changes.

• Net interest-bearing debt improved by DKK 525 million year-over-year; net interest-bearing deposit of DKK 87 million at period end.

• Order book at 30 June: DKK 12.6 billion, with additional awarded but uncontracted orders of DKK 0.9 billion and framework agreements valued at DKK 5.4 billion.

Outlook and guidance

• 2024 guidance maintained: revenue expected at DKK 10.0–10.5 billion and EBIT at DKK 400–425 million.

• 92% order coverage for 2024 after the first half, supported by a strong order book and pipeline.

• Losses from discontinued operations expected to decrease as international wind-down nears completion.