Sitowise Group (SITOWS) Q2 2024 earnings summary

Executive summary

• Net sales declined by 9.9% year-on-year in Q2 2024 to €50.9 million, with adjusted EBITA margin dropping to 5.0% from 8.0%, mainly due to weak performance in Sweden and Buildings.

• Infra and Digital Solutions divisions maintained solid performance, while Buildings and Sweden underperformed, heavily impacting group results.

• Strategic initiatives progressed, especially in SaaS and AI-driven products, with new launches like Planect and CO2 Roadmap contributing to revenue and future competitiveness.

• Acquisition of KM Project Oy's expert operations completed in April to enhance transport sector capabilities.

• Cash flow remained strong, and the order book was stable quarter-on-quarter.

Financial highlights

• Q2 2024 net sales: €50.9m (-9.9% y/y); adjusted EBITA: €2.6m (5.0% margin, -43.3% y/y); operating profit: €1.1m (-69.7% y/y).

• Cash flow from operating activities before financial items and taxes was €5.9 million, down from €9.6 million year-over-year.

• Net debt/Adjusted EBITDA at 4.3x at end of Q2 2024; net debt: €56.1m.

• Equity ratio: 43.6% at end of Q2 2024; gearing: 47.0%.

• Earnings per share (EPS) €0.00 in Q2 2024, down from €0.16 year-over-year.

Outlook and guidance

• Net sales are expected to decline for the full year, mainly due to Buildings and Sweden; adjusted EBITA margin to be lower than 2023.

• Market environment expected to remain mixed in H2 2024, with Infra and Digital Solutions supported by green transition and digitalization.

• Recovery in Buildings and Sweden is anticipated mainly in 2025, with only modest improvement expected late in 2024.