init innovation in traffic systems (IXX) Q3 2024 earnings summary

Executive summary

• Orders in Q3 2024 reached EUR 57.3m, up EUR 19.0m from Q3 2023, with significant new customer wins in Europe.

• Order backlog as of 30 September 2024 was EUR 392.5m, EUR 226.3m higher year-over-year.

• DILAX Intelcom GmbH was acquired and consolidated from September 2024, strengthening the railway market position.

Financial highlights

• Q3 2024 revenue was EUR 63.6m, up 19.1% from Q3 2023; nine-month revenue totaled EUR 178.1m, up 24.5% year-over-year.

• Gross profit in Q3 2024 was EUR 22.2m (Q3 2023: EUR 19.7m); gross margin declined to 35.0% from 36.8%.

• EBIT for Q3 2024 was EUR 5.0m (Q3 2023: EUR 5.5m); nine-month EBIT rose to EUR 11.7m from EUR 7.1m.

• Net profit for Q3 2024 was EUR 3.3m (Q3 2023: EUR 3.8m); nine-month net profit was EUR 7.9m, up from EUR 5.0m.

• Cash flow from operating activities in Q3 2024 was EUR 8.1m, significantly higher than Q3 2023 (EUR 2.9m).

Outlook and guidance

• Revenue target for 2024 remains EUR 240-260m; EBIT expected between EUR 24-28m.

• Management confirms guidance, expecting the strongest quarter in Q4.

• DILAX integration does not materially change the outlook.

• Growth prospects supported by increased incoming orders and sector trends like digitalization and climate initiatives.