Basler (BSL) Q3 2024 earnings summary

Executive summary

• Sales for the first nine months of 2024 declined 13% year-over-year to €136.7 million, while bookings/orders rose 4% to €133.5 million, outperforming the industry.

• Gross profit margin improved to 46.5% from 43.4% year-over-year, but Q3 saw a drop due to lower sales and economies of scale.

• EBITDA improved to €9.0 million from €3.3 million, and pre-tax loss narrowed to €4.9 million from €16.1 million; net loss was €6.7 million, a 62% improvement.

• Workforce reduced from over 1,040 to 869 FTEs year-over-year, with further reductions planned to lower the break-even point.

• Management board changes: CCO Alexander Temme to depart, Hardy Mehl to assume CCO role, and new CFO to start January 2025.

Financial highlights

• Sales for the first nine months: €136.7 million, down 13% year-over-year; order entry €133.5 million, up 4%.

• Gross profit: €63.5 million, down 7% year-over-year; gross margin improved by 3 percentage points to 46.5%.

• EBITDA: €9.0 million (up from €3.3 million); EBT: -€4.9 million (improved from -€16.1 million); net income: -€6.7 million (improved from -€17.5 million).

• Free cash flow positive at €1.5 million (vs. -€11.1 million prior year); cash at period end €23.9 million.

• Share price declined from €12 to €8.99, with market capitalization down 23% to €276.4 million.

Outlook and guidance

• No substantial market recovery expected for the remainder of 2024; bookings expected to improve sequentially due to seasonality.

• Sales guidance revised down to €178–184 million; pre-tax loss expected between €8–12 million, including ~€5.5 million one-off costs.

• Break-even point targeted below €180 million, with ongoing cost and CapEx controls and further FTE reductions planned.

• Midterm ambition to reach €300 million in sales and 12% EBT margin by 2027, contingent on market recovery and China market access.