Solutions 30 (S30) Q2 2024 TU earnings summary

Executive summary

• Q2 2024 revenue was €252 million, down 4.5% year-over-year; H1 revenue stable at €517 million, down 0.4% year-over-year.

• Revenue decline driven by reduced exposure to low-margin telecom contracts in France and Spain, and delays in fiber deployment in Belgium.

• Energy activities saw robust growth, up 29% group-wide in Q2, with France up 56% and Germany up 36%.

• Fiber ramp-up in Germany accelerated, with Q2 revenue up 36%; Benelux faced delays due to operator negotiations.

• Positive resolution of negotiations in Italy, with business set to resume in Q3 under improved conditions.

Financial highlights

• Q2 2024 revenue: €252 million (-4.5% year-over-year); H1 revenue: €517 million (-0.4% year-over-year); organic Q2 revenue change was -4.7%.

• Segment breakdown for Q2: Connectivity €191.3m (-8.6%), Energy €35.8m (+29.5%), Technology €24.6m (-8.3%).

• Q2 revenue by geography: France €90.7m (-7.2%), Benelux €96.1m (-1.1%), Other Countries €65.1m (-5.4%).

• H1 revenue: Benelux €196.8m (+9.4%), France €188.6m (-5.4%), Other Countries €131.6m (-5.8%).

• Germany Q2 revenue up 36% to €19.7m; Poland up 15.2% to €13.9m.

Outlook and guidance

• Full-year 2024 revenue expected to decrease slightly versus 2023, but adjusted EBITDA margin and adjusted EBITDA to improve.

• Selectivity in mature markets (France, Spain, UK) to continue, prioritizing profitability and margin over volume.

• German fiber market expected to deliver strong, coordinated double-digit growth.

• Energy activities anticipated to maintain strong momentum; Italian business to normalize in Q3.

• Benelux fiber ramp-up to remain slow in H2; France to see further revenue decline in Connectivity but sustained Energy growth.