Solutions 30 (S30) H1 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 37.4% year-over-year to €37.7 million, with margin up 200 bps to 7.3% as profitability was prioritized over volume.

• Revenue for H1 2024 was €517.4 million, nearly flat year-over-year (-0.3%), with organic growth at -0.7%.

• Net income group share improved by €8.5 million to -€5.9 million, including €7 million in non-cash customer relationship amortization.

• Free cash flow improved significantly to -€6.3 million from -€32.4 million, driven by EBITDA growth and better working capital management.

• 2024 full-year outlook confirmed, with continued focus on margin improvement and cash generation.

Financial highlights

• Adjusted EBIT more than doubled to €11.1 million (+124.4% year-over-year), with operating income turning positive at €1.4 million.

• Adjusted EBITDA margin increased to 7.3% from 5.3% in H1 2023.

• Net bank debt at June 2024 was €26.7 million, with a net debt/EBITDA ratio of 1.3x.

• Equity stood at €117.1 million as of June 30, 2024.

• Gross cash position was €68.8 million, down from €118.2 million at year-end 2023.

Outlook and guidance

• Full-year 2024 revenue expected to be slightly lower than 2023, but with higher adjusted EBITDA and margin.

• Margin improvement expected from continued selectivity in contract portfolio, especially in France and Spain.

• Growth in Energy Solutions and German fiber deployments to continue.

• Benelux expected to remain strong, though margins may be temporarily impacted by telecom sector negotiations and elections.

• Net income expected to approach breakeven in 2025.