Groupe OKwind Société anonyme (ALOKW) H2 2024 earnings summary

Executive summary

• Revenue declined 31% year-over-year to €57.1M, mainly due to a sharp drop in B2B sales, especially in the agricultural segment, amid a challenging economic and sector context.

• EBITDA fell to €0.47M (0.8% margin) from €12.9M (15.7% margin) in 2023, reflecting lower activity, ongoing organizational structuring, and increased subcontracting costs.

• Net result turned negative at -€3.6M versus €7.6M profit in 2023, impacted by lower sales, higher personnel and operating costs, and a €1.3M impairment on Osmosun shares.

• The company maintained a solid cash position of €15M at year-end, supported by improved working capital management and strong client collections.

• 2024 was a transition year, with significant investments in R&D, new product launches (notably the TREA 29000-R tracker and BESS storage), and the start of construction for a new industrial site to support future growth.

Financial highlights

• Revenue: €57.1M in 2024, down from €82.5M in 2023 (-31% YoY).

• EBITDA: €0.47M (0.8% margin), down from €12.9M (15.7% margin) in 2023.

• Net income: -€3.6M, compared to €7.6M in 2023.

• Gross margin improved to 53.0% (from 51.1%) due to lower material costs and improved procurement.

• Cash flow from operations benefited from a €9.6M improvement in working capital, mainly from client collections.

• Net financial debt at €5.8M, with a syndicated loan covenant breach at year-end, but a waiver was obtained from lenders.

Outlook and guidance

• The company expects a major rebound in activity by end-2025, driven by the new industrial site and a broadened product portfolio.

• Regulatory changes (lower subsidies for small solar installations, potential electricity price hikes in 2026) are expected to favor self-consumption solutions.

• Strategic focus is on autonomy, customer-centricity, and expanding into industry, water, and collective self-consumption markets.