Gurit (GURN) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were CHF 213.5 million, down 8.8% year-over-year, with a slow Q1 followed by a stronger Q2 driven by new wind blade ramp-ups and higher non-wind demand.

• Adjusted operating profit was CHF 11.6 million (5.4% margin), slightly down from CHF 13.6 million (5.6%) in H1 2023.

• Net debt reduced to CHF 63.4 million from CHF 78 million year-over-year.

• Structural Profiles business reached break-even, supported by successful ramp-up in India and major restructuring.

• Marine and industrial segments stabilized and showed growth, while wind segment faced subdued demand, especially in Europe and the US.

Financial highlights

• Net sales declined 8.8% year-over-year at constant exchange rates, and 12.8% in Swiss francs.

• Adjusted operating profit was CHF 11.6 million (5.4% margin); Q2 margin reached 8.5%.

• Free cash flow was CHF 1.0 million, down from CHF 6.5 million in H1 2023.

• Equity ratio decreased to 26.2% from 33.8% a year ago, mainly due to H1 loss and goodwill offset.

• EBITDA margin stable at 8.1%-8.4%, including restructuring expenses.

Outlook and guidance

• Full-year net sales expected at the lower end of CHF 435–485 million guidance.

• Adjusted operating profit margin guidance of 5%-8% confirmed for the full year.

• H2 2024 sales anticipated to be slightly stronger than H1, contingent on customer demand and project materialization.

• Wind market growth expected to accelerate from 2026-2027, especially in EMEA and North America.

• Marine and industrial segments expected to continue modest to mid-single digit growth and gain strategic relevance.