Wirtek (WIRTEK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was TDKK 16,812, down 3% year-over-year, with EBITDA at TDKK 678, a 63% decrease, mainly due to acquisition-related costs and overcapacity.

• Energy became the largest business unit, growing revenue by 95% year-over-year, driven by strategic focus and recent acquisitions.

• Acquisitions of Pragmasoft and Seluxit, both focused on Clean Energy, completed in early Q3 2024, expected to enhance growth and profitability.

• The organizational transformation into five business units has improved competitive positioning and mitigated negative impacts from market uncertainties.

Financial highlights

• H1 2024 revenue was TDKK 34,797, down 2% from H1 2023; EBITDA for H1 2024 was TDKK 2,516, down 31% year-over-year.

• Pre-tax profit (EBT) in Q2 2024 was TDKK 48, a 97% decrease year-over-year; H1 2024 EBT was TDKK 1,299, down 58%.

• Cash holdings at end of Q2 2024 were TDKK 1,710, a 67% decrease from Q2 2023, reflecting planned investments.

• Equity increased by 4% to TDKK 17,053 in H1 2024; equity ratio rose to 60%.

• Positive operating cash flow of TDKK 591 in Q2 2024 and TDKK 1,993 for H1 2024; cash conversion ratio (operating cash flow/EBITDA) was 79% in H1 2024.

Outlook and guidance

• 2024 revenue expected at DKK 74.0m–78.0m, representing 5%–11% growth over 2023.

• 2024 EBITDA expected at DKK 6.5m–7.5m, a 0%–15% increase over 2023.

• Market uncertainties expected to persist in H2 2024; acquisitions to impact results from August 2024.