Kesla (KELAS) Q2 2024 earnings summary

Executive summary

• Net profit remained positive despite a 24.1% year-over-year revenue decline in H1 2024, with cost adjustments and restructuring actions implemented to address weak demand and market uncertainty.

• Order intake and backlog dropped sharply, but quarterly order intake has shown slight growth for three consecutive quarters, suggesting a potential market bottom.

• Export share of revenue was 54.2% in H1 and 57.6% in Q2, reflecting continued international business focus.

Financial highlights

• H1 2024 revenue was €23.6 million, down 24.1% year-over-year; Q2 revenue was €12.9 million, down 12.8%.

• H1 operating profit was €425 thousand (down 73.4%); Q2 operating profit was €340 thousand (down 65.9%).

• H1 EPS was €0.03 (down 92.6%); Q2 EPS was €0.05 (down 78.5%).

• H1 operating cash flow was €1.2 million (down 65%); Q2 operating cash flow was -€422 thousand.

• Order backlog at end of H1 was €10.7 million, 62.8% lower year-over-year.

Outlook and guidance

• 2024 revenue is expected to decline, with operating profit remaining at the previous year's level.