BEWi (BEWI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was €277 million, down 4% year-over-year, with adjusted EBITDA at €29.4 million, including a €7.6 million compensation item.

• Operational cash flow was strong at €23 million, supported by cost management, inventory reduction, and real estate divestments.

• Liquidity exceeded €100 million at quarter-end, with a target of €150 million by year-end.

• Strategic priorities included cost adaptation, new production lines in Belgium and Sweden, and a focus on recycled EPS to leverage regulatory trends.

• Continued investment in recycling capabilities, with over €50 million invested since 2018.

Financial highlights

• Net sales for Q2 2024 were €277.2 million, a 4.3% decrease year-over-year; adjusted EBITDA was €29.4 million, down 6.5%.

• Net profit for Q2 was €1.4 million, down from €3.0 million in Q2 2023.

• Operating cash flow was €23.0 million; CAPEX for Q2 was €7.8 million.

• Net debt (excl. IFRS 16) reduced to €318 million, down €30 million year-over-year.

• Leverage ratio at 4.8x, with a long-term target below 2.5x.

Outlook and guidance

• Building and construction markets remain challenging but show early signs of recovery, especially in insulation and recycled materials.

• Strategic review of the Automotive business underway to reduce exposure and focus on insulation and energy-efficient solutions.

• Continued focus on cost reduction, cash flow, and maintaining low CAPEX below 2.5% of net sales.

• Ambition to double revenue in the next 3–5 years, with insulation as a key growth driver.