SPIE (SPIE) Q2 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenue of €4,705 million, up 14.4% year-over-year, with 5.8% organic growth and 8.3% from acquisitions, driven by strong performance in Germany and all segments.

• EBITA/EBITDA rose 20.7% to €266 million, with margin up 30 bps to 5.6% of revenue; adjusted net income up nearly 29% to €158 million.

• Germany became the largest contributor by revenue and EBITA, reflecting successful M&A and organic expansion.

• Robust M&A activity included four acquisitions in Germany and one in France, expanding presence in telecom, energy, and nuclear sectors.

• MSCI ESG rating upgraded to 'A', reflecting progress on decarbonization and governance.

Financial highlights

• Revenue reached an all-time H1 high of €4,705 million, up 14.4% year-over-year, with 5.8% organic growth and 8.3% from acquisitions.

• EBITA/EBITDA increased by 20.7% to €266 million; EBITA margin: 5.6% (+30 bps year-over-year); adjusted net income up 28.9% to €158 million.

• Free cash flow improved to -€79.9 million from over -€200 million in H1 2023; free cash flow (excl. IFRS 16): -€211 million.

• Leverage ratio (excl. IFRS 16) rose slightly to 2.4x from 2.3x year-over-year due to M&A activity.

• Working capital at -€457 million, equivalent to -17 days of revenue.

Outlook and guidance

• 2024 EBITA/EBITDA margin guidance raised to at least 7% of revenue, a minimum 30 bps improvement, achieving 2025 target one year early.

• Organic growth expected to remain positive in H2, but at a slower pace than H1.

• Continued focus on dynamic bolt-on M&A, pricing power, and operational excellence.

• Dividend payout policy maintained at ~40% of adjusted net income.

• Investor day planned for 2025, having reached 2025 financial targets a year early.