CSG (CSG) H1 2024 earnings summary

Revenue and business performance

• Q3 2024 revenues reached €2,519.6m, up 129% YoY, with LTM revenues at €3,153.9m, an 82% increase over FY 2023.

• H1 2024 revenues were €1,579.1m, more than doubling from €670.6m in H1 2023.

• Defense division contributed 79% of Q3 revenues, with NATO-related business accounting for 51% of the total.

• Growth was fully organic, driven by strong demand for defense products, especially ammunition and land systems.

• Non-NATO business saw a slight increase, mainly from Indonesia and other countries, alongside Ukraine.

Profitability and margins

• Q3 2024 Operating EBITDA was €671.0m, up 191% YoY, with LTM Operating EBITDA at €878.8m, a 100% increase over FY 2023.

• H1 2024 Operating EBITDA was €424.8m, up from €143.6m in H1 2023.

• Operating EBITDA margin reached 27.9% in Q3, boosted by the sale of older inventories; normalized margin expected around 25%.

• Profit from operating activities for Q3 was €624.2m, with net profit at €411.96m.

• Profitability growth attributed to operational efficiency and capacity expansion.

Financial position, leverage, and cash flow

• Net debt increased to €814.7m at September 2024, with gross debt at €1,249.9m.

• Net leverage improved to 0.9x and gross leverage to 1.4x, reflecting ongoing deleveraging.

• Cash and cash equivalents stood at €435.2m at the end of September 2024.

• Total assets increased to €4,643.7m as of June 30, 2024, from €3,352.3m at year-end 2023.

• Equity rose to €958.5m from €686.9m at December 31, 2023.