Troax Group (TROAX) Q2 2024 earnings summary

Executive summary

• Order intake grew by 6% year-over-year to €69.6m, driven by acquisitions and structural growth of 9%, while organic growth declined.

• Revenues increased by 5% year-over-year to €71.9m, with acquisitions contributing nearly 9% and organic growth negative.

• Mixed demand across regions: UK and APAC showed strong growth, while Continental Europe, North America, and Nordics declined.

• EBITA margin remained resilient at 16.8% despite lower volumes and one-off SG&A costs of ~€1m.

• Operational cash flow remained strong, inventories reduced, and the balance sheet supports further acquisitions and investments.

Financial highlights

• Q2 2024 order intake: €69.6m (+6% y/y); revenues: €71.9m (+5% y/y); organic growth negative, structural/acquisition growth positive.

• EBITA: €12.1m (down from €13.0m); EBITA margin: 16.8% (down from 19.0%), impacted by lower organic volumes and acquisition dilution.

• Adjusted EPS decreased from €0.16 to €0.14 year-over-year.

• Net debt at period end: €66.1m (€40.1m last year); net debt/EBITDA: 1.1x (target <2.5x).

• Free operating cash flow: €10.2m, reflecting strong cash generation.

Outlook and guidance

• Automotive segment expected to maintain robust demand in Europe and North America.

• Construction in Nordics likely to remain weak through 2025 and into 2026 due to late-cycle effects.

• Automated warehousing recovery anticipated late this year or early next year, but at a more cautious pace.

• Market demand remains stable but at a lower level than last year; uncertainty persists due to macroeconomic and political factors.

• Continued investment in organic and acquisitive growth planned, with focus on cost control.