Schoeller-Bleckmann Oilfield Equipment (SBO) Q3 2024 earnings summary

Executive summary

• Sales reached €425.6 million for the first nine months of 2024, with 8.7% growth in Oilfield Equipment (OE) and an 11% decline in Advanced Manufacturing & Services (AMS); regional expansion offset U.S. market weakness.

• EBIT was €51.8 million, significantly below last year, mainly due to weak H1 in OE and AMS demand moderation; free cash flow improved to €42.5 million, and cash position increased to €263.2 million.

• Regional expansion continued with double-digit growth in the Middle East and Latin America, a new facility in Saudi Arabia, and a three-year contract in Guyana.

• ESG initiatives advanced, including geothermal and CCUS projects, R&D for corrosion-resistant alloys, and an ESG Award at the Austrian Leading Companies Awards.

• Strategic recalibration and rebranding are underway, with updates expected in early 2025.

Financial highlights

• Group sales for Q1–Q3 2024 were €425.6 million, down 2.7% year-over-year; OE up 8.7%, AMS down 11.1%.

• EBIT was €51.8 million, with EBIT margin at 12.2%; EBITDA reached €75.8 million (17.8% margin).

• Profit after tax was €34.4 million, down from €55.8 million; EPS at €2.18 versus €3.54 prior year.

• Free cash flow rose to €42.5 million, surpassing previous years, aided by lower capex and reduced working capital.

• Cash and cash equivalents increased to €263.2 million, net debt decreased to €87.2 million.

Outlook and guidance

• Long-term industry fundamentals remain positive, especially for gas and energy transition markets; SBO focuses on innovation and sustainability.

• Near-term outlook is cautious due to commodity price volatility, policy changes, and geopolitical uncertainties, with moderated spending in the US.

• AMS division expects moderate sales environment and is diversifying into 3D metal printing and non-oil/gas sectors.

• OE division targets double-digit EBIT margins, driven by regional expansion and operational improvements.

• Strategy recalibration and brand relaunch planned for early 2025.