Harju Elekter (HAE1T) Q2 2024 earnings summary

Executive summary

• Achieved historically high operating profit in Q2 2024, with a 7.8% operating margin, driven by improved efficiency and supply chain resolution.

• Revenue remained stable year-over-year at €56.8M for Q2 and €103.6M for 6M, with significant profit growth.

• Lithuanian and Estonian units were key contributors; profitability in Finland restored, while Sweden is targeted for improvement.

• Order volumes are stabilizing, with no expected business volume growth in H2, but strong electrification sector demand for 2025.

• Strategic plan for future growth and expansion in development, to be approved next quarter.

Financial highlights

• Q2 2024 revenue: €56.8M (flat YoY); 6M 2024 revenue: €103.6M (+1.5% YoY).

• Q2 gross profit: €8.2M (+24% YoY); gross margin: 14.4% (+2.8pp YoY).

• Q2 EBIT: €4.5M (up 105% YoY); net profit: €3.5M (up 292% YoY); EPS: €0.19 (up 280% YoY).

• 6M net profit: €3.8M (+134% YoY); 6M EPS: €0.21 (+110% YoY).

• Operating expenses decreased 3.7% YoY in Q2, mainly from lower cost of sales and admin expenses.

Outlook and guidance

• Order volumes are stabilizing, with no expected growth in business volume for H2 2024.

• Reduced orders from Finnish distribution networks will continue to impact results, but new customers and projects partially offset this.

• Strong electrification sector investments and increased workload expected for 2025.