Drillcon (DRIL) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 115 MSEK, down 11% year-over-year, mainly due to Americas exit and Iberia disruptions.

• Adjusted EBIT for Q2 rose to 12.0 MSEK (7.1), with EBITDA at 17.9 MSEK (14.5), reflecting improved profitability.

• Americas segment fully exited; related costs of -2.7 MSEK impacted results, with equipment redeployed to Europe.

• Ongoing digital transformation and supply chain improvements are expected to enhance efficiency and reduce capital binding.

• Strong order backlog of 925 MSEK supports stable demand outlook despite volatile commodity prices.

Financial highlights

• Q2 net sales: 115 MSEK (129); H1 net sales: 223 MSEK (236).

• Q2 adjusted EBIT: 12.0 MSEK (7.1); H1 adjusted EBIT: 17.1 MSEK (5.3).

• Q2 EBITDA: 17.9 MSEK (14.5); H1 EBITDA: 28.0 MSEK (20.0).

• Q2 net income: 6.2 MSEK (6.2); H1 net income: 9.0 MSEK (4.3).

• Q2 operating cash flow: 18.4 MSEK (7.3); H1: 12.6 MSEK (15.8).

Outlook and guidance

• Short-term demand and investment appetite in mining remain high.

• Underlying demand for drilling services expected to stay strong despite metal price volatility.

• Iberia expected to reach full operational capacity by end of Q3 2024.