Teleste (TLT1V) Q3 2024 earnings summary

Executive summary

• Net sales declined to €29.9M in Q3 2024 from €35.2M year-over-year, mainly due to weak European demand, but adjusted EBIT improved to €1.5M from €0.5M.

• Operating profit increased despite revenue decline, driven by cost-saving and productivity measures.

• Both business units improved profitability, with significant restructuring and cost prioritization implemented.

• Orders received dropped 32.6% in Broadband Networks and 32.4% in Public Safety and Mobility year-over-year.

• North American deliveries rose, but low demand persisted in Europe; order intake and backlog declined year-over-year.

Financial highlights

• Adjusted EBITDA rose to €2.7M (9.0% margin) in Q3 2024 from €1.9M (5.4%) year-over-year.

• Q3 EPS was €0.04 (vs €0.03); result for the period was €0.6M, up from €0.3M year-over-year.

• Cash flow from operations was €3.5M in Q3 2024 (+277.1% YoY), with 9M cash flow at €10.6M (-16.3% YoY).

• Order book at period end was €118.5M, down 8.1% year-over-year.

• 9M net sales: €96.0M (-20.4% YoY); adjusted EBITDA: €7.1M (+2.8% YoY); adjusted EBIT: €3.2M (+24.7% YoY).

Outlook and guidance

• 2024 net sales expected at €120–135M; adjusted operating result forecasted at €1–4M.

• North American DOCSIS 4.0 investments to drive growth from 2025; European DOCSIS 4.0 investments expected in H2 2025.