Frequentis (FQT) H1 2024 earnings summary

Executive summary

• Revenues increased by 10.4% year-over-year to €206.2 million in H1 2024, with order intake up 9.6% to €227.9 million and orders on hand reaching a record €621.1 million.

• Five-year revenue growth reached 50%, with an EBIT margin of 6.2% in FY 2023.

• The business model remains stable, with growth in all regions, especially North and South America, and a strong European home market.

• Strategic focus on expanding software, cybersecurity, and workflow management, supported by new CTO appointment and acquisitions.

• Net loss for H1 2024 was €2.1 million, with basic EPS at €-0.17, reflecting seasonality and higher personnel costs.

Financial highlights

• H1 2024 revenues: €206.2 million (+10.4%); order intake: €227.9 million (+9.6%); orders on hand: €621.1 million (+13.6%).

• EBITDA for H1 2024 was €6.7 million (margin 3.3%); EBIT was -€2.8 million (margin -1.3%), reflecting typical seasonality.

• Net cash position at end of June 2024 was €66.6 million, including €55.3 million in customer advances.

• Equity ratio stood at 38.8%.

• Dividend for 2023 increased by 9.1% to €0.24 per share, paid in June 2024.

Outlook and guidance

• Management targets an EBIT margin of about 6% for 2024, with revenue and order intake expected to increase.

• R&D spending projected to exceed €25.2 million in 2024; capex planned at approximately €12 million.

• Margin pressure anticipated from inflation and start-up costs for major projects.

• Uncertainties remain due to geopolitical tensions, inflation, and potential supply chain disruptions.