Washtec (WSU) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue reached a record €489.5m, up 1.5% YoY; EBIT rose 10.3% to €41.9m and free cash flow increased to €46.1m.

• Strategic priorities include Total Customer Care, focus on Europe and North America, expanded digital capabilities, and sustainability; after-sales exceeded 40% of revenue.

Financial highlights

• Revenue was €489.5m vs €482.2m in FY 2022; EBIT was €41.9m vs €38.0m, and net income was €28.0m vs €26.4m.

• Q4 revenue declined 7.6% YoY to €132.8m; EBIT was €15.0m vs €15.4m, while EBIT margin rose to 11.3% from 10.7%.

• FY free cash flow rose to €46.1m from €16.2m, despite €9.5m spent acquiring the American subsidiary’s site.

Outlook and guidance

• FY 2024 revenue is expected at a similar level to 2023, within ±3%; EBIT is forecast to increase in the mid-single-digit percentage range.

• FY 2024 free cash flow guidance is €30–40m; ROCE is expected within ±1 percentage point of FY 2023’s 21.5%.