Custos Maritime & Defence Industries (CUST) Q2 2024 earnings summary

Executive summary

• Achieved SEK 1 million improvement in EBITDA for Q2 2024, driven by cost reductions and divestments.

• Revenue declined to SEK 239k in Q2 2024 from SEK 1,621k year-over-year, reflecting asset divestments.

• Net loss for Q2 2024 increased to SEK -3,026k from SEK -1,398k year-over-year.

• Oceanview acquisition progressing, with proforma Q2 revenue of SEK 18.4 million and H1 revenue of SEK 30 million.

Financial highlights

• Q2 2024 revenue: SEK 239k (Q2 2023: SEK 1,621k); H1 2024: SEK 577k (H1 2023: SEK 4,151k).

• Q2 2024 EBITDA: SEK -2,251k (Q2 2023: SEK -3,328k); H1 2024: SEK -4,977k (H1 2023: SEK -8,795k).

• Q2 2024 net loss: SEK -3,026k (Q2 2023: SEK -1,398k); H1 2024 net loss: SEK -5,828k (H1 2023: SEK -8,391k).

• Gross margin for Q2 2024 at 100% due to absence of COGS.

• Cash and cash equivalents at period end: SEK 427k (Q2 2023: SEK 2,249k).

Outlook and guidance

• Oceanview integration expected to drive significant revenue growth, with most income materializing in H2.

• Board confident in ability to secure new share issue and/or loan financing to support ongoing operations.