Nilfisk (NLFSK) Q2 2024 earnings summary

Executive summary

• Jon Sintorn was appointed CEO in June 2024, bringing extensive transformation and growth experience.

• Q2 2024 delivered robust results with 0.7% revenue growth to €278.4m and 2.4% organic growth, led by strong Consumer and Service segments, while Professional was flat and Specialty declined.

• EMEA region led with 6.5% organic growth; Americas declined by 1.7% and APAC by 8.7% due to market headwinds and FX impacts.

• Gross margin improved to 42.2%, the highest since Q4 2020, up 1.8 percentage points year-over-year, supported by price management and lower raw material costs.

• Profit for the period was €14.2m, down from €17.3m, as higher EBITDA was offset by increased financial costs.

Financial highlights

• Q2 2024 revenue reached €278.4m, up 0.7% year-over-year, with 2.4% organic growth.

• EBITDA before special items increased to €39.2m, margin 14.1% (up from 13.7% in Q2 2023).

• Free cash flow was €8.4m, down €31.7m year-over-year due to higher working capital and capex.

• Net interest-bearing debt reduced to €263.3m, with financial gearing at 1.9x, within target range.

• R&D spend increased to €9.8m (3.5% of revenue), reflecting continued investment in product development.

Outlook and guidance

• Full-year 2024 guidance confirmed: organic revenue growth of 3–6%, EBITDA margin before special items of 13–15%, CapEx ratio around 4%.

• Growth in H2 expected to be driven by new product launches and continued service expansion.

• Special items anticipated in the low to mid-single digit million euro range.