Séché Environnement (SCHP) H1 2024 earnings summary

Executive summary

• H1 2024 saw stable operating results and strong cash generation despite lower energy prices and spot market declines, with organic growth of around +2% excluding energy and spot effects.

• Financial strength was preserved through robust cash generation and a reduction in net financial debt.

• The acquisition of ECO, Singapore's hazardous waste market leader with a 32% share, was completed and is expected to be accretive, providing a strategic foothold in Southeast Asia.

• The 2024–2026 business plan was confirmed and upgraded, with improved 2024 targets and a raised 2026 outlook due to ECO integration.

Financial highlights

• Contributed revenue rose to €505.1m (+2.8% reported), but like-for-like revenue declined by 4.6% due to energy price normalization and spot activity delays.

• EBITDA fell 13.3% to €88.3m (17.5% margin), mainly due to lower energy prices and reduced emergency activity; net income dropped 65% to €8.0m (1.6% margin).

• Operating free cash flow increased 46% to €67.5m, with a cash conversion rate of 76%.

• Net financial debt reduced to €616.9m, with financial leverage at 3.0x EBITDA.

• Earnings per share decreased to €1.02 from €2.94 year-over-year.

Outlook and guidance

• 2024 revenue target set at €1,120m, EBITDA at €235m, and COI at €110m, reflecting ECO consolidation and improved H2 outlook.

• 2026 targets raised: revenue of €1,290m, EBITDA of €305–315m (24% margin), COI of €165–175m (13–14% margin), and leverage below 3x.

• Organic growth trajectory of ~5% per year for 2025–2026 confirmed.

• Growth expected to accelerate in H2 2024, driven by dynamic spot markets and new contracts.