SinterCast (SINT) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose 11% year-on-year to SEK 35.1 million, with recurring revenue up 9% and accounting for 96% of total revenue.

• Operating result for Q2 increased 110% to SEK 13.1 million, with a 37.4% operating margin.

• Earnings per share for Q2 reached SEK 1.48, up 69% year-on-year.

• Cashflow from operations in Q2 was SEK 16.6 million, up 20% year-on-year.

• Record production of 4.0 million Engine Equivalents in Q2, marking thirteen consecutive quarters of year-on-year growth.

Financial highlights

• Year-to-date revenue increased 16% to SEK 67.3 million, driven by a 13% production increase and strong consumables sales.

• Year-to-date operating result rose to SEK 20.5 million, with a 30.5% operating margin.

• Year-to-date earnings per share were SEK 2.35, up 27% year-on-year.

• Cashflow from operations for the first half was SEK 31.8 million, up 28% year-on-year.

• Dividend for 2024 set at SEK 5.50 per share (ordinary) and SEK 0.60 per share (extraordinary), totaling SEK 43.1 million.

Outlook and guidance

• Temporary reduction in volume expected from September 2024 due to end-of-life of a high-volume program, with full-year 2024 volume likely similar to 2023.

• Five million Engine Equivalent milestone expected in 2026; double-digit CAGR targeted through 2030 and seven million milestone within five years.

• Installation revenue for 2024 and 2025 expected to exceed historical average of SEK 8 million.

• SinterCast anticipates paying Swedish income tax from late 2027 or early 2028.