Cenergy (CENER) H2 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, driven by high margins, strong demand in the energy sector, and significant execution of large cable and steel pipe projects from the backlog.

• Revenue grew 10% year-over-year to €1.8 billion, with both cable and steel pipe segments contributing to growth.

• Adjusted EBITDA rose 27% year-over-year to €272 million, with margins improving to 15.1% from 13.1% in 2023.

• Net profit after tax nearly doubled to €139 million, supporting a proposed dividend of €0.14 per share, up 75% from the prior year.

• Order backlog reached a record €3.44 billion at year-end, reflecting robust demand and successful new project awards.

Financial highlights

• Revenue: €1.8 billion (+10% y-o-y); Adjusted EBITDA: €272 million (+27% y-o-y); Net profit: €139 million (+90% y-o-y).

• Adjusted EBITDA margin improved to 15.1% (+200bps y-o-y); gross profit margin at 16.4%.

• Free cash flow generation was €48 million, supporting CapEx and debt reduction.

• Adjusted return on capital employed exceeded 26%, up from 21% in 2023.

• Net debt reduced to €152 million from €378 million, with leverage ratio at 0.6x EBITDA.

Outlook and guidance

• FY2025 adjusted EBITDA guidance: €300–330 million, 10–20% higher than 2024, assuming strong demand and smooth project execution.

• Full utilization of manufacturing plants expected in 2025, with continued capacity expansion and strong order backlog.

• Medium-term ambition: organic revenue growth above 12% per annum and adjusted EBITDA of €380–420 million.

• Positive outlook for both European and US markets, with investment program on track.

• Cables segment expects continued growth from energy transition and grid enhancements; steel pipes segment anticipates robust demand from gas, CCS, and hydrogen projects.