Gesco (GSC1) H1 2024 earnings summary

Executive summary

• Subdued demand led to a decline in sales and earnings in H1 2024, with no recovery expected in H2 2024.

• Incoming orders fell 4.6% year-over-year to €275.5 million; sales dropped 13.4% to €252.8 million.

• EBITDA halved to €15.7 million and EBIT fell 71.2% to €6.6 million compared to H1 2023.

• Net earnings after minority interests declined 85.9% to €2.0 million; EPS at €0.19.

• Share price decreased 31.8% over the reporting period.

Financial highlights

• Cost of materials ratio improved to 59.1% (H1 2023: 60.3%), but personnel expenses ratio rose to 26.4% (H1 2023: 21.9%).

• Free cash flow turned positive at €13.1 million (H1 2023: €-0.6 million).

• Equity ratio at 54.9%, down from 59.2% at year-end 2023.

• Total assets increased 3.7% to €486.2 million; cash and cash equivalents at €36.9 million.

Outlook and guidance

• 2024 sales guidance lowered to €520–540 million (previously €570–590 million); net earnings after minority interests now expected at €8–12 million (previously €26–28 million).

• No significant recovery in demand anticipated before 2025 due to macroeconomic and geopolitical uncertainties.

• H2 2024 earnings expected to improve due to project deliveries and implemented cost measures.