NV Bekaert (BEKB) H1 2024 earnings summary

Executive summary

• Achieved resilient H1 2024 performance with underlying profitability near 10% and EBITU of €204 million, despite an 11% revenue decline to €2.06–2.1 billion, supported by strategic execution and efficiency gains.

• Three business units reported EBIT/EBITU margins above 10%, with SWS margin up to 11.4%; BBRG underperformed due to operational issues in US/UK steel ropes, with a turnaround plan in place.

• Strategic progress included the acquisition and integration of BEXCO and Flintstone, and continued focus on innovation and sustainability, with recognition as a top 500 global sustainability performer.

Financial highlights

• Revenue declined 11% year-over-year to €2.06–2.1 billion, mainly due to normalization of cost pass-throughs and lower organic volumes.

• EBIT/EBITU reached €204 million, with a margin of 9.9% (+20bps); underlying EPS stable at €3.04 (vs €3.07 in H1 2023).

• Free cash flow from operations was €43–116 million, stable or improved versus prior year.

• Net debt reduced to €399 million (from €530 million in H1 2023); net debt/EBITDAU at 0.7x.

• Working capital reduced by €56 million year-over-year; inventories and receivables decreased.

Outlook and guidance

• Management expects a modest 3–4% decline in FY 2024 sales versus 2023, with seasonality and project phasing impacting results.

• EBIT/EBITU margins anticipated to increase, with EBIT/EBITU in line with expectations and strong free cash flow generation expected for FY 2024.

• CapEx for 2024 expected to be below initial guidance (~€200 million) due to tactical postponements.