Séché Environnement (SCHP) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €540.4m, up 2.8% year-over-year, with a 3% rise in contributive revenue to €505.1m.

• Major acquisition of ECO in Singapore, the largest in company history, expands presence in APAC hazardous waste markets.

• H1 2024 was impacted by a sharp drop in energy prices and lower emergency environmental contracts, affecting operational results.

• Strong cash generation and improved financial flexibility, with net debt reduced to €616.9m and liquidity at €361.0m.

• New 2026 business plan sets higher commercial, operational, and financial targets, reflecting improved outlook post-ECO acquisition.

Financial highlights

• Consolidated revenue: €540.4m (+2.8% vs. H1 2023); contributive revenue: €505.1m (+2.8%).

• EBITDA: €88.3m (17.5% margin), down from €101.9m (20.7%) in H1 2023, mainly due to energy and "spot" contract impacts.

• Operating income: €28.2m (5.6% margin), down from €45.5m (9.3%).

• Net income (Group share): €8.0m (1.6% margin), down from €23.0m (4.7%). EPS: €1.02 vs. €2.94.

• Free cash flow: €67.5m (+46.1% vs. H1 2023); net investments: €43.7m.

Outlook and guidance

• 2024 revenue target raised to ~€1,120m (from ~€1,100m), reflecting ECO integration.

• 2024 EBITDA target increased to ~€235m; operating income (ROC) target to ~€110m.

• 2026 revenue target raised to ~€1,290m (from ~€1,200m); EBITDA to €305–315m (vs. €265–275m); ROC to €165–175m (vs. €132–144m).

• Financial leverage expected at 3.8x EBITDA end-2024, returning below 3x by end-2026.

• ESG targets: 15% GHG reduction (2027 vs. 2020), 8% water withdrawal reduction (2027 vs. 2023).