BTS Group (BTS) Q2 2024 earnings summary

Executive summary

• North America and Other Markets grew by 12% and 8% respectively, driving a 23% combined EBITDA increase, while Europe saw a 23% revenue decline due to project delays and cost freezes.

• Group sales rose 3% year-over-year in Q2 2024 to MSEK 730, with EBITDA/EBITA up 4% to SEK 110 million and a stable margin of 15.1%.

• For H1 2024, net sales were MSEK 1,348 (+5% currency-adjusted), EBITA rose 10% to MSEK 169, and profit after tax increased 36% to MSEK 114, driven by strong North America and Other Markets.

• Two acquisitions in summer 2024—AI-focused Wonderway and SEAC in Thailand—strengthened the geographic and service portfolio.

• Margins remained solid at 15.1%, and profit after tax was stable.

Financial highlights

• Group EBITDA/EBITA improved 4% to SEK 110 million in Q2 2024, with a margin of 15.1%.

• H1 2024 EBITA margin improved to 12.5% (from 12.0%), and profit after tax excluding earn-out reversal was MSEK 85 (+2%).

• Cash flow from operating activities for H1 2024 was MSEK 17, a significant improvement from -99 MSEK in H1 2023.

• Net debt at period end was MSEK -76, with an equity ratio of 46%.

• North America achieved double-digit growth for the second consecutive quarter, led by pharma/biotech and tech sectors.

Outlook and guidance

• 2024 EBITDA/EBITA is expected to surpass 2023 levels, with the outlook unchanged.

• Management anticipates BTS Europe will return to growth in the second half, with low single-digit growth targeted and an improved pipeline.