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.

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

• H1 2024 revenue was stable at €517.4 million (-0.3% year-over-year), with organic growth at -0.7% and acquisitions contributing +0.3%.

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

• Full-year outlook confirmed: slight revenue decrease expected due to selectivity and temporary delays, but further improvement in adjusted EBITDA margin and absolute EBITDA anticipated.

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.

• Free cash flow at -€6.3 million, a €26.1 million improvement year-over-year.

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

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

Outlook and guidance

• Full-year 2024 outlook confirmed: slightly lower revenue than 2023 but higher adjusted EBITDA margin and absolute EBITDA.

• Benelux margins to remain under pressure in H2 due to fiber rollout delays and sector negotiations; France and Germany expected to perform well.

• Net income expected to approach breakeven in 2025.

• Selectivity in Spain and UK to support margin improvement but may lead to revenue declines.

• Margins expected to benefit from growth in Energy Solutions and German fiber activities.