Dovre Group (DOV1V) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 rose 7.5% year-over-year to EUR 50.9 million, driven by strong growth in Renewable Energy, while H1 2024 net sales were flat at EUR 93.2 million.

• Q2 profitability improved with EBITDA up 19.7% and operating profit up 23.8%, but H1 results were negative due to a EUR 5.8 million write-down in a Renewable Energy project in Q1.

• Project Personnel and Consulting segments saw revenue declines, while Renewable Energy posted significant growth in both Q2 and H1.

• Corrective actions have been taken in Renewable Energy, with expectations for improved performance in H2 2024.

Financial highlights

• Q2 2024: Net sales EUR 50.9m (+7.5%), EBITDA EUR 2.1m (+19.7%), operating profit EUR 1.9m (+23.8%), EPS EUR 0.010.

• H1 2024: Net sales EUR 93.2m (+0.1%), EBITDA EUR -2.5m (vs. EUR 3.7m), operating result EUR -3.0m (vs. EUR 3.2m), EPS EUR -0.013.

• Net cash flow from operating activities in H1 was EUR -0.3m (vs. EUR 7.1m), with cash and cash equivalents at EUR 10.6m.

• Equity ratio at 35.1%, gearing at 11.6%, and return on equity at -20.4% for H1 2024.

Outlook and guidance

• 2024 net sales expected between EUR 185–210m and EBIT between EUR 2–4m, unchanged from previous guidance.

• EBIT for 2024 will be lower than 2023 due to the one-time write-down; H2 2024 expected to outperform H2 2023 in revenue and EBIT.

• Project Personnel and Consulting expected to decline in both revenue and EBIT in 2024.