KSB SE & Co (KSB) H1 2024 earnings summary

Executive summary

• Sales revenue and EBIT both increased by 3.7% in H1 2024, with order intake rising to €1,645 million, supported by strong demand in SupremeServ and the energy market.

• SupremeServ remains the main driver of growth and profitability, with a strategic target of 40% of sales by 2030.

• Equity ratio improved to 46.2%, reflecting a solid balance sheet despite €60 million in dividend distributions.

• Operating cash flow increased to €83.5 million, and share price performance outpaced the SDAX.

• The Mission TEN30 strategy targets over €4 billion order intake and a return on sales above 10% by 2030.

Financial highlights

• EBIT reached €116.3 million, with a return on sales of 8.1%.

• Earnings after taxes were €70.4 million, slightly down due to higher tax expenses.

• Net financial position improved to €279.4 million, and free cash flow was €18.6 million.

• Earnings per ordinary share increased to €33.13 year-over-year.

• Preference share price rose 27% year-over-year, outperforming the SDAX.

Outlook and guidance

• 2024 forecast: order intake €2,800–€3,150 million, sales revenue €2,700–€3,050 million, EBIT €210–€245 million.

• SAP S/4HANA implementation costs in the lower double-digit million range are included in EBIT guidance.

• Tax ratio is expected to decrease by year-end but remain above 30%.

• The company targets a 10%+ return on sales and over €4 billion order intake by 2030.