VBG Group (VBG) Q2 2024 earnings summary

Executive summary

• Achieved one of the best quarters on record in Q2 2024, with 3% year-over-year sales growth and strong EBITA, driven by high North American demand and the Rathi Transpower acquisition in India.

• Mobile Thermal Solutions accounted for over 55% of revenues, with robust growth in North America.

• Rathi Transpower acquisition exceeded expectations and significantly contributed to global sales and profitability.

Financial highlights

• Q2 2024 sales rose 3.0% to SEK 1,495M, with EBITA up to SEK 217M and a margin of 14.5%.

• Earnings per share increased 21% to SEK 6.71 in Q2; year-to-date EPS reached SEK 14.54.

• Operating cash flow in Q2 reached SEK 205M; H1 cash flow from operations was SEK 349M.

• Group turnover up 6.3% for H1 2024; EBITA margin year-to-date at 15.7%.

• Rolling 12-month net sales reached SEK 5,919M; EBITA was SEK 920M.

Outlook and guidance

• European trailer market expected to remain weak through 2024, with recovery not anticipated until 2025.

• North American MTS off-road segment expected to sustain growth; bus segment demand flattening.

• Order intake and order book are flat year-over-year entering Q3.

• Focus remains on acquisitions, organic growth, new production facilities, and sustainable profitability.

• Management remains positive about the future, citing a balanced portfolio and strong financial position despite uncertainties.