Brunel International (BRNL) H1 2025 earnings summary

Executive summary

• Q2 and H1 2025 revenue and gross profit declined year-over-year, with Q2 revenue at €303 million (down 12%) and H1 at €613 million (down 11%), organic declines at 7% and 8% respectively.

• Gross profit fell 20% in Q2 and 19% in H1, with margin pressure in Germany and lower high-margin permit revenue.

• Underlying EBIT dropped 46% in Q2 and 45% in H1, with organic declines of 27% and 31% respectively.

• Net profit for H1 was €0.3 million, down from €14.9 million in H1 2024; EPS at €0.01.

• Cost-saving programs exceeded targets, achieving €13.4 million in H1, with further €10 million annual savings targeted and additional measures including closure of the car test centre in Dortmund, Germany.

Financial highlights

• Q2 revenue: €303M (down 12%); H1 revenue: €613M (down 11%).

• Q2 gross profit: €52M (down 20%); H1 gross profit: €109M (down 19%).

• Underlying EBIT: Q2 €6.3M (down 46%), H1 €14.7M (down 45%).

• Free cash flow was negative €24.3M in H1, mainly due to low earnings, delayed collections, and higher tax payments.

• Net debt at 30 June 2025 was €1.9M, down from €64.7M net cash at year-end 2024, mainly due to dividend payments and seasonality.

Outlook and guidance

• Q3 organic year-on-year trend expected to be in line with Q2, with continued FX headwinds.

• Full-year effective tax rate expected between 40% and 45%.

• Updated strategy, including possible market exits, to be shared in Q1 2026.

• New project activity in conventional energy is increasing, with major impacts expected in H2 2025 and 2026.