MT Højgaard Holding (MTHH) Q3 2024 earnings summary

Executive summary

• Revenue increased by 6% year-over-year in Q3 2024, with EBIT up 3% and operating margin improving to 4.6%.

• Order intake surged 35% year-over-year, reaching DKK 1.7 billion, though the order book declined 16% to DKK 11.7 billion due to high production and lower Q1 intake.

• International business is winding down, with key asset sales and project completions, including the Nuuk airport, and focus shifting to profitable Danish operations.

• Management changes include the appointment of Rasmus Untidt as CEO and Dennis Nørgaard as CFO.

Financial highlights

• Revenue for the first nine months rose to DKK 7,543 million from DKK 7,065 million year-over-year; Q3 revenue was DKK 2,585 million.

• EBIT for the period increased to DKK 345 million from DKK 262 million, with EBIT margin improving from 3.7% to 4.6%.

• Net result for the period was DKK 114 million, up from DKK 17 million year-over-year; EPS YTD: DKK 14.7.

• Gross margin YTD was 7.5% (2023: 6.8%).

• Cash flow from operations turned negative at DKK -216 million, compared to DKK 426 million last year.

Outlook and guidance

• Upgraded full-year 2024 guidance maintained, with revenue expected at DKK 10.5 billion and EBIT at DKK 440–460 million (13–18% above 2023).

• 95% of expected 2024 revenue is already covered by the order book after Q3; order coverage at 99% for Enemærke & Petersen.

• Losses from discontinued operations expected to be lower than 2023.

• Market demand stable, with growth in civil engineering, refurbishment, and public sector projects.