Tubacex (TUB) Q4 2023 earnings summary

Executive summary

• FY 2023 set records with sales of €852.4M, up 19.3%, and EBITDA of €125.2M, up 35.6%, at a 14.7% margin.

• Net profit rose 79.5% to €36.3M; the record €1.6B order book and contracting-to-sales ratio close to 1 supported business visibility.

• Prior strategic-plan targets were achieved ahead of schedule, prompting the NT² plan through 2027.

Financial highlights

• FY sales were €852.4M versus €714.7M in FY22; Q4 sales rose 12.1% YoY to €210.4M.

• FY EBITDA rose 35.6% to €125.2M; Q4 EBITDA increased 25.6% to €31.4M, with a quarterly record margin of 14.9%.

• FY EBIT was €80.7M, up 81.6%; net income was €36.3M, up 79.5%. Q4 net profit was €8.5M, up 163.2%.

• Strategic long-term agreements, customer positioning and higher-value product mix supported results despite falling raw-material prices.

Outlook and guidance

• H1 2024 is expected to align with H1 2023, with potential improvement in H2; order intake supports expectations for high growth in 2025.

• Backlog visibility points to 2024 results and margins in line with 2023.

• NT² 2027 targets include revenue of €1.2–€1.4B, EBITDA above €200M and net debt/EBITDA below 2x.

• Strategic aims include reducing oil and gas exposure by one-third, leading in Low Carbon and maintaining financial solidity while pursuing inorganic growth; payout target is 30–40%.