Vaisala (VAIAS) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw strong growth in orders received and net sales, with operating result more than doubling year-over-year, driven by both business areas rebounding after a slow start.

• Net sales grew 13% year-over-year, and orders received increased 14%, with a record-high order book of EUR 196.9 million at the end of June 2024.

• Subscription and service sales posted high growth, especially in Industrial Measurements and Weather and Environment.

• Strategy execution focused on profitability, digitalization, and AI, with continued investment in capabilities.

• CEO highlighted sustained profitability in weather business and a return to growth in Industrial Measurements.

Financial highlights

• Q2 2024: Orders received EUR 147.2m (+14%), net sales EUR 148.4m (+13%), EBIT EUR 23.7m (15.9% margin), EPS EUR 0.49 (+124%).

• H1 2024: Orders received EUR 270.5m (+4%), net sales EUR 260.5m (-1%), EBIT EUR 30.8m (11.8% margin), EPS EUR 0.64 (+31%).

• Gross margin improved to 57.0% in Q2 and 55.8% in H1.

• Free cash flow for Q2 was around EUR 18 million; cash flow from operating activities EUR 24.8m in H1.

• Dividend of EUR 27.2 million (EUR 0.75 per share) paid in April 2024.

Outlook and guidance

• 2024 net sales guidance narrowed to EUR 540–570 million (from EUR 530–570 million); EBIT guidance raised to EUR 68–78 million (from EUR 63–78 million).

• H2 2024 expected to be stronger than H1, but business environment remains uncertain.

• Early signs of recovery in North America; other markets remain uncertain.