Raute (RAUTE) Q2 2024 earnings summary

Executive summary

• Achieved all-time high quarterly net sales of €57.1 million in Q2 2024, up 94.5% year-over-year, with strong profitability improvement, driven by Wood Processing and Services segments, and a robust order book of €223 million at period end.

• Net sales for H1 2024 reached €101.7 million, a 53.8% increase from H1 2023, with project deliveries and services progressing well despite a challenging market environment.

• Raised 2024 guidance for net sales to €185–210 million and comparable EBITDA to €13–17 million, reflecting strong project deliveries and service business performance.

• The Analyzers business returned to profit after a loss in Q1, supported by new innovations.

• Strong order book and improved operational efficiency support a positive outlook despite market uncertainty.

Financial highlights

• Net sales reached €57.1 million in Q2 2024, up 95% year-over-year; H1 2024 net sales were €101.7 million, up 53.8% from H1 2023.

• Comparable EBITDA was €5.4 million (margin 9.4%) in Q2 2024, up from €0.7 million (2.5%) in Q2 2023; H1 2024 operating profit was €5.4 million, compared to a loss of €0.2 million in H1 2023.

• Earnings per share for H1 2024 were €0.76, up from €-0.07 in H1 2023.

• Operating cash flow was -€1.7 million in Q2 2024 and -€8.5 million for H1 2024, negatively impacted by changes in net working capital.

• Equity ratio stood at 48.5%, above the >40% target, but down from 57.3% a year ago; gearing at -73.1%.

Outlook and guidance

• 2024 net sales expected between €185–210 million and comparable EBITDA between €13–17 million, upgraded from previous guidance.

• Strong order backlog and better-than-expected project and service business performance underpin the improved outlook.

• Market uncertainty persists due to high interest rates, economic uncertainty, and geopolitical instability.

• Customers focus on efficiency improvements, automation, and preventive maintenance, with some signs of improving sentiment.