SigmaRoc (SRC) H2 2024 earnings summary

Executive summary

• Full integration of the late-2023 lime and limestone acquisition enabled a robust synergy program, delivering EUR 9 million in 2024 and raising the minimum synergy target to EUR 40 million by 2027.

• Continued divestment of non-core assets at strong valuations, supporting portfolio refocusing and de-gearing.

• Maintained robust performance across challenging markets, with volumes managed, market share preserved, and EBITDA and EPS exceeding consensus for the eighth consecutive year of EPS growth.

Financial highlights

• Revenue reached nearly EUR 1 billion (or £998m), up 72% year-over-year on a pro forma basis; underlying EBITDA rose 92% to EUR 225 million, with a 240 basis point margin improvement to 22.5%.

• Free cash flow conversion reached 52.8%, and leverage ended the year at 2.1x, down from 2.6x.

• Underlying EPS rose to 8.4 (or 8.35p), marking the eighth consecutive year of EPS growth.

• ROIC improved to 11.5%, progressing toward the 15% target.

Outlook and guidance

• Positive outlook for 2025, with early signs of recovery as interest rates fall and fiscal stimulus is expected in Germany and across Europe.

• Synergy program minimum delivery raised to EUR 40 million by 2027, with potential upside to EUR 60 million depending on market conditions.

• Targeting EBITDA margins above 25%, potentially approaching 30% as volumes recover.

• ROIC expected to surpass 12% in 2025 and move toward 15% over the coming years.

• De-gearing on track, with further rationalisation of non-core portfolio planned.