Séché Environnement (SCHP) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 contributed revenue rose 18.5% year-over-year to €286.3m, with organic growth of 1.9% and strong performance in France; new acquisitions and ramp-up of large-scale contracts supported growth.

• Cumulative 9-month contributed revenue reached €791.4m, up 7.9% reported, down 2.5% organically.

• Growth was driven by Services and Hazard Management, while Circular Economy activities faced headwinds from lower energy prices.

• Organic growth accelerated in France, while international performance was mixed.

• Large-scale, long-term service contracts began ramping up during the summer and H2 2024.

Financial highlights

• Q3 2024 contributed revenue was €286.3m, up 18.5% year-over-year (reported), and up 1.9% like-for-like.

• France contributed €188.2m in Q3, up 3.5% both reported and like-for-like; international revenue at €98.1m, up 63.8% reported but down 2.9% organically.

• Major scope effects from acquisitions (Furia, Essac, Rent-A-Drum, Eco) added €40.5m to Q3 revenue.

• Services revenue up 22.7% to €131.8m; Hazard Management up 45% to €74.1m; Circular Economy down 3.4% to €80.4m.

• Q3 2024 consolidated revenue was €306.8m, including €20.5m non-contributed revenue.

Outlook and guidance

• Full-year 2024 revenue target of €1,120 million reaffirmed, supported by continued growth in Services and international contracts.

• Positive trends from Q3 expected to continue in Q4, especially from large-scale, multi-year international contracts.

• Anticipated growth in spot activities and major service contracts, especially in AmLat.