SIT (SIT) H1 2024 earnings summary

Executive summary

• H1 2024 consolidated revenues declined 9.6% year-over-year to €150.9M, with Q2 revenues down 1.8% to €81.8M compared to Q2 2023.

• EBITDA for H1 rose slightly to €13.5M (9.0% margin), while adjusted net loss was €3.1M versus a €1.6M profit in H1 2023.

• Reported net loss improved to €6.1M from €18.1M in H1 2023, which included a goodwill impairment.

• Net financial debt increased to €160.9M from €146.4M year-over-year.

Financial highlights

• EBITDA margin improved to 9.0% from 7.9% year-over-year.

• Operating result nearly broke even at -€0.1M, compared to a -€20.0M loss in H1 2023.

• Cash flow from operations after capex was -€2.1M, improved from -€12.5M in H1 2023.

• Net trade working capital rose to €83.6M (27.6% of revenues), up from €74.9M in H1 2023.

• Net financial charges included a one-off €3.9M cost from amended banking contracts.

Outlook and guidance

• Metering business expected to achieve full-year sales in line with 2023, with Water Metering growth offsetting slower Gas Metering.

• Heating & Ventilation sales expected to improve in H2, with annual revenues in line with Q2 performance.

• EBITDA margin projected to improve by 100–200 bps; capex planned at €20M; net debt targeted between €145–€150M by year-end.

• Selective investments to continue, especially in R&D and headquarters completion.