Sif Holding (SIFG) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 saw improved safety and lower sick leave, with no lost time incidents and LTIF dropping to 0.81 from 5.97 year-over-year.

• Expansion at Maasvlakte 2 is on schedule, with two of three production lines mechanically complete and operational start-up underway.

• Production throughput was 42 Kton in Q3 2024, bringing YTD output to 128 Kton, down from 144 Kton in the first nine months of 2023.

• Major contracts signed for Baltyk 2 & 3 and East Anglia TWO wind farms, supporting a robust order book for 2025 and 2026.

Financial highlights

• YTD contribution increased 4.5% to €111.0 million compared to €106.2 million in the first nine months of 2023.

• Adjusted YTD EBITDA rose 9.8% to €31.3 million, while reported EBITDA was stable at €24.2 million.

• Q3 2024 adjusted EBITDA was €5.2 million, down from €7.1 million in Q3 2023, impacted by €3.3 million in non-recurring expansion expenses.

• Net working capital at end of Q3 2024 was -€119.2 million, with a total cash position of €88.2 million.

• Solvency at 39.3% and net leverage at 0.00, both well within banking covenants.

Outlook and guidance

• Order book stands at 525 Kton as of end September 2024, with strong visibility into 2025 and more than half of 2026 capacity sold.

• Adjusted EBITDA guidance reiterated at approximately €35 million for 2024, €135 million for 2025, and at least €160 million for 2026.

• Tender activity remains high, though contract awards are experiencing some delays.