Lamor (LAMOR) Q2 2024 earnings summary

Executive summary

• Strategic expansion in the Middle East continued, highlighted by a €55 million, three-year NEOM service agreement and a four-month NCEC extension in Saudi Arabia.

• Revenue and profitability declined year-over-year but improved sequentially from Q1 2024; Q2 revenue was €27.1 million, down 19.7% YoY.

• Order intake for H1 2024 reached €85.3 million, surpassing the full-year 2023 total, with a growing order backlog of €159.1 million.

• Expansion into Norwegian aquaculture and continued growth in South American soil remediation.

• Focus remains on operational efficiency, profitability, and business scalability through the Next Leap program.

Financial highlights

• Q2 2024 revenue: €27.1 million (down 19.7% YoY); H1 2024 revenue: €51.0 million (down 9.9% YoY).

• Adjusted EBIT for H1: €1.9 million (3.7% margin, -52.2% YoY); Q2 adjusted EBIT: €1.4 million (5.2% margin, -62.4% YoY).

• A €1.9 million cost update to the Kuwait project impacted both revenue and EBIT; excluding this, Q2 adjusted EBIT margin would have been 11.4%.

• H1 order intake reached €85.3 million, over 600% higher than the comparable period last year.

• Net cash flow from operations in H1 was negative €11.3 million; Q2 was positive €1.8 million.

Outlook and guidance

• 2024 revenue is expected to be at least at 2023 level (€122.5 million); no profitability guidance due to market and tender timing uncertainties.

• NEOM project revenue expected to start in Q4 after a Q3 mobilization phase.

• Focus in H2 2024 on reducing working capital, supporting tendering processes, and operational efficiency.

• Long-term targets: annual revenue >€250 million, adjusted EBIT margin >14%, strong balance sheet.

• Market demand for environmental solutions expected to increase, driven by regulation and green transition.