Etteplan (ETTE) Q3 2024 earnings summary

Executive summary

• Q3 2024 was more difficult than expected, with revenue flat at €80.0 million and significant declines in profitability due to weak demand, non-recurring costs, and adaptation measures, especially in Finland and Germany.

• Two profit warnings were issued in Q3, and financial guidance for 2024 was lowered twice due to persistent market headwinds and restructuring costs.

• Investments in service development, digitalization, and AI continued, with notable growth in China and the defense sector, though these gains did not offset declines elsewhere.

• Adaptation measures included layoffs and discontinuation of the Building Technologies business in Germany.

Financial highlights

• Q3 2024 revenue was €80.0 million, unchanged year-over-year; organic growth was -4.2%.

• Q3 EBITDA was €2.9 million (3.7% margin), down 53.8% year-over-year, impacted by €2.2 million in non-recurring costs.

• Q3 EBIT was €1.4 million (1.8% margin), down 71.3% year-over-year; basic EPS for Q3 was €0.00.

• Operating cash flow for Q3 was -€0.3 million, affected by non-recurring costs and increased receivables.

• 9M 2024 revenue was €269.7 million (+1.9%); EBITA €17.9 million (6.6% margin); EBIT €13.5 million (5.0% margin).

Outlook and guidance

• 2024 revenue guidance was lowered twice, now estimated at €355–370 million, with EBIT expected at €18–22 million.

• Market conditions are expected to remain challenging for the rest of 2024, with no substantial improvement anticipated; some improvement is hoped for in 2025, but timing is uncertain.