ABL Group (ABL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was USD 68.6 million, up 1% year-over-year, with AGR growing 7% and declines in OWC and Longitude due to weak renewables demand.

• Adjusted EBIT dropped to USD 2.8 million from USD 4.9 million, with margin falling to 4.0% from 7.2% as profitability declined across ABL, OWC, and Longitude.

• Net cash decreased to USD 10.8 million, mainly due to the Ross Offshore acquisition and USD 4.8 million dividend payment.

• Ross Offshore acquisition completed in June for USD 9.5 million, expanding AGR and to impact P&L from Q3 2024.

• Management is focused on long-term growth and diversification, despite current headwinds in renewables.

Financial highlights

• Revenue was nearly flat year-over-year (+1%), with operating costs up 4% due to inflation and withholding tax.

• EBIT for the quarter was USD 2.2 million, down from USD 4.4 million in Q2 2023; adjusted EBIT margin declined to 4.0% from 7.2%.

• Free cash flow ended at USD 10.8 million, with USD 4.0 million generated from operations.

• Order backlog at period end was USD 70.7 million, down from USD 93.6 million a year earlier.

• Net cash position at quarter-end was USD 10.8 million after acquisitions and dividends.

Outlook and guidance

• Offshore wind and renewables are expected to remain weak until at least the second half of 2025.

• Oil and gas markets remain strong and are expected to support high activity for the rest of 2024.

• Management anticipates long-term growth, with a focus on diversification and readiness for market recovery.

• Additional dividend planned for H2 2024; focus remains on capital efficiency and industry consolidation.

• OWC is diversifying into US onshore renewables, with a negative EBIT impact of up to USD 0.5 million in 2024.