Wirtek (WIRTEK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 8% year-over-year to DKK 18.8 million, driven by strong Energy segment performance and recent acquisitions.

• Adjusted EBITDA surged 103% to DKK 2.3 million, reflecting core profitability improvements after acquisition-related adjustments.

• Energy business unit now accounts for 39% of total revenue, up 98% year-over-year, solidifying its position as the largest segment.

• Strategic acquisitions of Pragmasoft and Seluxit expanded capabilities, geographic reach, and contributed to revenue and cash flow growth.

• Shift underway from pure service provider to comprehensive solution provider, leveraging IoT products and platforms.

Financial highlights

• Q3 2024 revenue: DKK 18.8 million (+8% YoY); Q1–Q3 2024 revenue: DKK 53.6 million (+1% YoY).

• Adjusted Q3 2024 EBITDA: DKK 2.3 million (+103% YoY); margin improved to 12.7% from 6.7%.

• Earnings per share for the first nine months was DKK 0.18, down 54% year-over-year; adjusted EPS would be DKK 0.31.

• Equity ratio at 42%, down from 54% year-over-year due to acquisitions, expected to improve next quarter.

• Liquidity ratio remains strong at 149%, comparable to last year despite acquisition payments.

Outlook and guidance

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

• 2024 EBITDA forecasted at DKK 6.5m–7.5m, up 0%–15% year-over-year.

• Expectation of continued growth in the energy segment in 2025, supported by recent acquisitions and new solution offerings.

• Anticipate more recurring and scalable revenue streams from solutions business.

• Significant organic employee growth expected next year, driven by a strong sales pipeline.