DMG MORI (GIL) Q2 2024 earnings summary

Executive summary

• Performed well in H1 2024 despite a challenging market with subdued demand and geopolitical uncertainties, especially in Europe; strategic focus on Machining Transformation (MX) and investments in talent and production modernization.

Financial highlights

• Order intake fell 16% year-over-year to €1,228.6m; sales revenues declined 7% to €1,104.2m; order backlog at €1,588.8m (+3% vs. Dec 2023).

• EBITDA rose 32% to €142.3m; EBIT up 43% to €105.6m; EBIT margin improved to 9.6% (from 6.2%).

• Earnings after taxes from continuing operations increased 45% to €80.0m; group net result at €-11.9m due to €-91.9m loss from discontinued Russian operations.

• Free cash flow was €-47.4m (vs. €34.9m prior year); cash and equivalents at €95.9m (down from €158.7m at year-end).

Outlook and guidance

• 2024 guidance confirmed: order intake ~€2.3bn, sales revenues ~€2.4bn, EBIT ~€200m, free cash flow ~€150m; forecasts exclude discontinued operations and potential compensation from investment guarantee.

• Market recovery expected to be moderate in H2; global machine tool consumption forecast to decline 1.1% in 2024.