PST Group (PTR1L) H2 2024 earnings summary

Executive summary

• PST Group AB, a leading Lithuanian construction group, reported a consolidated net loss of EUR 6.15 million for 2024, reversing a net profit of EUR 3.32 million in 2023, amid a 16% year-over-year revenue decline to EUR 100.68 million.

• The downturn was driven by lower contract availability, rising labor and material costs, and significant losses in subsidiaries, especially in Scandinavian markets.

• Major restructuring occurred in underperforming subsidiaries, and a settlement agreement brought a one-time insurance reimbursement of EUR 1.2 million.

• The group implemented efficiency measures, simplified its structure, and focused on risk management and sustainability initiatives.

• No dividends were declared for 2024.

Financial highlights

• Consolidated revenue fell to EUR 100.68 million in 2024 from EUR 119.83 million in 2023 (down 16% year-over-year).

• Group net loss was EUR 6.15 million, compared to a net profit of EUR 3.32 million in 2023.

• Gross profit dropped to EUR 4.45 million (2023: EUR 12.24 million); gross margin fell to 4.42% from 10.21%.

• EBITDA was negative at EUR -3.60 million (2023: EUR 1.84 million); EBITDA margin at -3.58%.

• Basic EPS was EUR -0.38 (2023: EUR 0.20).

Outlook and guidance

• The group expects continued challenges from macroeconomic and geopolitical risks, with a focus on large-scale infrastructure, military, and energy projects.

• Management is prioritizing risk minimization in new contracts, operational efficiency, and subsidiary oversight.

• A sustainability strategy and transition plan are being developed, with targets for GHG emissions and waste reduction by 2027.