Brunel International (BRNL) H2 2024 earnings summary

Executive summary

• FY 2024 revenue increased by 3% to EUR 1,364.8 million, with organic growth of 2%, despite macroeconomic and geopolitical uncertainties impacting the second half.

• Underlying EBIT for FY 2024 was EUR 58.6 million, down 6% (down 10% organically); net profit declined 6% to EUR 30.2 million; EPS also down 6% to EUR 0.59.

• Strong free cash flow of EUR 74.6 million, driven by effective receivable collection and cost reduction measures.

• Acquisitions of Advance Careers (Australia, ESG recruitment) and Equals (Netherlands, IT training for women) expanded market position and sustainability capabilities.

• Proposed appointment of new CFO, Toine van Doremalen, effective April 1; Peter de Laat became CEO in October 2024.

Financial highlights

• Q4 2024 revenue was EUR 334.5 million, down 3% (down 5% organically); Q4 gross profit was EUR 61.8 million, down 7% (down 10% organically); underlying EBIT EUR 14.4 million, down 2% (down 15% organically).

• Gross margin for FY 2024 was 19.3% (down from 20.6% in 2023); EBIT margin at 4.3% (down from 4.7%).

• Free cash flow for the year was EUR 74.6 million; net cash balance at year-end was EUR 64.7 million, up from EUR 31.8 million.

• Dividend proposed at EUR 0.55 per share, payout ratio 93%, matching the previous year.

• Cost reduction plan executed in Q3 2024, lowering annual cost base by EUR 20 million.

Outlook and guidance

• Q1 2025 expected to continue current trends, with challenging economic conditions in Germany and Asia, but growth prospects in Americas, Middle East & India, and Australasia remain positive.

• Strong project pipeline in renewable energy and new contracts expected to contribute from H1 2025.

• Still targeting over 6% EBIT by 2027, with high single-digit revenue growth seen as feasible but not guided.

• Cost base for Q1 2025 expected to be EUR 49–50 million, up from Q4 but below Q1 2024.

• Operational efficiencies and lower cost base anticipated to partly offset challenging economic conditions in Q1 2025.