Teleste (TLT1V) Q2 2024 earnings summary

Executive summary

• Net sales and profitability declined in H1 2024 due to weak European cable market demand, while North American deliveries increased.

• Adjusted EBIT and EBITDA both decreased year-over-year; cost-saving measures and restructuring partially offset lower sales.

• Order book remained stable, with a shift toward Public Safety and Mobility, now representing 82% of the order book.

• Cash flow from operations remained positive for H1, supported by working capital release, despite a negative Q2 cash flow.

• Teleste's 1.8GHz DOCSIS 4.0-compliant smart amplifiers reached field deployment in North America.

Financial highlights

• H1 2024 net sales were €66.1M, down 22.6% from H1 2023; Q2 net sales were €29.5M, down from €40.1M.

• Adjusted EBIT for H1 2024 was €1.7M (2.6% margin), down 15.5% year-over-year; Q2 adjusted EBIT was €0.2M.

• EBIT for H1 2024 was -€1.1M, compared to €1.4M in H1 2023.

• Result for the period was -€1.6M in H1 2024, compared to €2.0M in H1 2023.

• Orders received in H1 2024 totaled €57.2M, down from €71.1M in H1 2023.

Outlook and guidance

• 2024 net sales are estimated at €140–150M (previously €140–165M); adjusted operating result guidance remains €3–6M.

• Market uncertainty, especially in Europe, is expected to persist through 2024.