Brunel International (BRNL) H1 2024 earnings summary

Executive summary

• Q2 2024 revenue increased by 6% year-over-year to €346 million (4% organic), with H1 2024 revenue up 8% to €696 million (8% organic).

• Gross profit declined 1% in Q2 and was flat for H1; gross margin fell 1.2 ppt to 18.8% in Q2.

• EBIT decreased 2% in Q2 (down 20% organically) and 6% in H1, with net profit for H1 2024 down 6%.

• A cost-saving program targeting at least €20 million in annual savings is underway, with most execution in Q3 and one-off costs of ~€4 million.

• CEO Jilko Andringa announced resignation in July 2024; succession planning is in progress.

Financial highlights

• Q2 2024 EBIT: €10.9 million (down 2% YoY, down 20% organically); H1 EBIT: €25.1 million (down 6%).

• H1 2024 net profit: €14.9 million (down from €15.9 million in H1 2023); EPS at €0.30 (2023: €0.32).

• Gross margin declined to 19.3% in H1 2024 from 20.8% in H1 2023.

• Net debt at 30 June 2024: €12.1 million, compared to €31.8 million net cash at year-end 2023.

• Dividend of €0.55 per share paid in June 2024.

Outlook and guidance

• Most regions expected to maintain current trends; Asia and DACH face project delays and challenging conditions.

• Full €20 million cost savings to be realized annually, with a one-off cost of €4 million, mostly in Q3.

• EBIT for next year projected to increase by €15 million due to cost savings.

• Robust renewables pipeline and high capital investment commitments expected to support H2 profitability.