Gesco (GSC1) Q3 2024 earnings summary

Executive summary

• Weak demand persisted, leading to declines in sales and earnings across all segments for the first nine months of 2024 compared to the previous year.

• Working capital was reduced as planned, and the group maintained a robust balance sheet despite challenging market conditions.

• No significant customer migration observed, with expectations of a catch-up effect when the economy recovers.

Financial highlights

• Sales for Q1–Q3 2024 were €382.9 million, down 11.1% year-over-year; incoming orders fell 4.0% to €400.6 million.

• EBITDA dropped 40.5% to €26.5 million; EBIT fell 59.2% to €12.7 million; net income after minority interests declined 72.6% to €5.4 million.

• Earnings per share decreased to €0.51 from €1.80 year-over-year.

• Operating cash flow improved to €28.6 million, reflecting progress in working capital reduction.

Outlook and guidance

• Forecast for 2024 maintained: consolidated sales of €520–540 million and net income after minority interests of €8–12 million.

• M&A transactions are not included in the forecast; actual performance may deviate due to ongoing uncertainties.