Solwers (SOLWERS) Q2 2024 earnings summary

Executive summary

• Revenue grew 20.2% year-over-year in H1 2024 to €39.9 million, mainly driven by acquisitions, with organic growth at 1%.

• Market conditions remained challenging due to high interest rates, inflation, and currency fluctuations, impacting investment activity and delaying recovery.

• Profitability declined due to one-off costs from Main List preparations and higher contingent consideration from outperforming subsidiaries.

• Order backlog and billing rate remained stable at 81.5%, with improvement noted in Q2.

• Headcount increased to 690 from 611, reflecting ongoing expansion and M&A activity.

Financial highlights

• H1 2024 revenue: €39.9 million (H1 2023: €31.1–33.2 million), up 20.2%.

• EBITDA: €3.75 million (9.4% margin), down from €4.0 million (12.1%) in H1 2023.

• EBITA: €3.3–4.01 million (8.2–10.1% margin); EBIT: €1.9–2.0 million (4.9% margin).

• Net profit: €0.75 million (1.9% margin), down from €1.48–1.5 million in H1 2023; EPS at €0.07 (vs €0.15).

• Net debt increased to €23.6 million (from €17.3 million); equity ratio at 43.4%.

Outlook and guidance

• Market recovery and investment activity delayed due to persistent high interest rates and inflation.

• Business climate expected to improve towards end of 2024; outlook and midterm targets unchanged: revenue growth >20% per year, EBITDA/EBITA margin target 12%, equity ratio >40%.

• Focus on sales growth, profit improvement, and targeted M&A in high-demand sectors such as energy and infrastructure.