Consti (CONSTI) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 reached EUR 82.9m, up 9.4% year-over-year, with strong growth in Building Technology and Public Sector, but declines in Housing Companies; H1 2024 net sales were EUR 148.4m, up 2.6% year-over-year.

• Q2 operating result (EBIT) was EUR 3.0m, matching the previous year; H1 EBIT was EUR 3.2m, slightly down from EUR 3.7m.

• Order backlog at the end of Q2 was EUR 261.2m, down 12.3% year-over-year; order intake for Q2 was EUR 90.8m, down 14.8% year-over-year.

• Profitability remained stable, with Q2 EBIT margin at 3.6% (4.0% in Q2 2023); H1 EBIT margin was 2.2% (2.5% in H1 2023); cash flow and liquidity remained solid.

• Updated strategy implementation underway, focusing on growth in Building Technology and operational efficiency.

Financial highlights

• Q2 2024 EBITDA was EUR 4.0m; H1 2024 EBITDA was EUR 5.3m.

• Q2 2024 free cash flow was EUR 1.2m (EUR 4.1m in Q2 2023); H1 free cash flow was EUR 0.7m (EUR 3.1m in H1 2023).

• Equity ratio improved to 38.5% (from 34.6%); net interest-bearing debt at EUR 3.9m, gearing at 9.6%.

• Earnings per share for H1 was EUR 0.27, down from EUR 0.33 year-over-year.

• Q2 2024 ROCE was 30.8% (30.0% in Q2 2023); reported ROI was 21.9% (20.9% in Q2 2023).

Outlook and guidance

• Operating result for 2024 is estimated to be in the range of EUR 9–12m.

• Market demand for renovation and building technology services expected to weaken in 2024; competition for renovation projects has intensified.

• No significant improvement in demand is expected during Q3 2024 due to high costs, interest rates, and tighter financing.

• Building construction output in Finland is expected to decrease by 6.4% in 2024; new construction by 12.5% and renovation by 0.4%.