TKH Group (TWEKA) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 turnover was €393.3 million, a 6.2% organic decline from Q3 2023, with EBITA at €42.1 million, down 13.8% organically.

• Year-to-date turnover reached €1,260.5 million, down 3.1% organically, and EBITA was €137.9 million, down 12.1% organically.

• High added value maintained at 51.5% for Q3 2024, up from 49.0% in Q3 2023, reflecting strategic focus.

• Order intake and sales funnel remain robust, supporting a strong order book for year-end and future growth.

• Cost-saving program of €15 million is on track, expected to support margin growth alongside higher capacity utilization.

Financial highlights

• Q3 2024 EBITA margin (ROS) for the first nine months was 10.9%, compared to 12.4% in 2023.

• Q3 saw a significant organic decrease in Smart Connectivity (down 10.8%) and Smart Vision (down 7.9%).

• Q3 turnover at Eemshaven facility expected to be €15–20 million lower than previous guidance due to ramp-up delays.

• Full-year EBITA/EBITDA guidance revised to €200–210 million, down from €220 million in 2023 (excluding divestments).

• Divestments in 2023 and 2024 included EKB, HE System Electronic, and TKH France as part of Accelerate 2025.

Outlook and guidance

• Q4 EBITA/EBITDA expected to be substantially higher than Q3, in line with previous expectations.

• Full-year 2024 organic turnover expected to be flat, with EBITA/EBITDA (excluding one-offs) between €200–210 million.

• Smart Vision systems anticipate turnover and EBITA growth in H2 2024 vs. H1 2024, with positive Q4 impact from secured projects.

• Smart Manufacturing systems expect organic growth for full-year 2024 vs. 2023, though H2 slightly lower than H1.

• Smart Connectivity systems Q4 EBITA expected to improve over Q3, despite ongoing challenges in Digitalization.