Kesla (KELAS) Q3 2024 earnings summary

Executive summary

• Revenue declined 31.4% year-over-year in Q3 to €7.5 million, driven by weak summer demand and global market uncertainty.

• Operating result deteriorated to -€714 thousand in Q3, down €595 thousand from the prior year.

• Order intake in Q3 rose 23.1% from a low base to €9.1 million, but the order backlog fell 44% to €12.6 million.

• For the first nine months, revenue dropped 26% to €31.1 million and operating result was -€289 thousand.

Financial highlights

• Q3 EPS was -€0.27 (vs. -€0.10 last year); nine-month EPS was -€0.24 (vs. €0.26).

• Operating cash flow turned positive in Q3 at €387 thousand (vs. -€998 thousand), and €1.63 million for the nine months.

• Export share of Q3 revenue was 50%; for the nine months, 53.2% (down from 62.2%).

• Net debt at quarter-end was €12.7 million, down 10.8% year-over-year.

Outlook and guidance

• Demand remains subdued due to economic uncertainty, limited customer financing, and inventory reductions by distributors.

• Lower interest rates have not yet spurred customer investment activity.

• Strategic focus in 2024 is on organizational renewal and building a foundation for profitable growth.