Vossloh (VOS) Q2 2024 earnings summary

Executive summary

• Orders received in Q2 2024 reached €419.5 million, up 22% year-over-year, marking the highest quarterly orders in company history; H1 2024 orders totaled €769.6 million, up 11.7% year-over-year.

• Order backlog at the end of Q2 2024 reached an all-time high of €905.5 million, up 5.4% year-over-year.

• Sales revenues in H1 2024 were €560.9 million, down 6.6% year-over-year, mainly due to lower sales in China, Asia, and Australia.

• EBIT for H1 2024 was €49.5 million, slightly above H1 2023; EBIT margin improved to 8.8%.

• Net income rose to €40.1 million in H1 2024 from €29.4 million in H1 2023, with EPS up to €1.96 from €1.15, mainly due to lower tax and interest expenses.

Financial highlights

• EBITDA for H1 2024 was €75.4 million (13.4% margin), compared to €78.5 million (13.1%) in H1 2023.

• Free cash flow was negative at €(4.7) million in H1 2024, down from €37.5 million in H1 2023; positive free cash flow is expected in H2 2024.

• Capital expenditure increased to €25.5 million in H1 2024, mainly in Lifecycle Solutions and Customized Modules.

• Equity rose to €660.3 million as of June 30, 2024, with the equity ratio increasing to 47.3%.

• Net financial debt (including leases) increased to €247.0 million as of June 30, 2024, up €12.3 million year-over-year.

Outlook and guidance

• 2024 sales revenue guidance is €1.16–1.26 billion, expected to be roughly on par with 2023 (€1.21 billion) despite the expiry of major projects.

• EBIT guidance for 2024 is €100–115 million, up from €98.5 million in 2023; EBIT margin expected between 8.3% and 9.5%.

• Value added guidance for 2024 is €7.5–22.5 million, with WACC raised to 9.5% from 8.5% in 2023.

• Core Components sales and EBIT expected to decline; Customized Modules and Lifecycle Solutions to see growth.