Lamor (LAMOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw new orders of €35.4 million, including major long-term service projects in Peru and Ecuador, with ongoing negotiations in the Middle East, Africa, and South America.

• Revenue remained stable at €30.8 million, with sequential improvement in profitability, though still below target and down 0.9% year-over-year.

• Operational focus is on improving profitability, efficiency, and leveraging the full product portfolio, supported by leadership changes and new SVPs for key regions.

• Major projects completed in Saudi Arabia and ongoing in Kuwait, Oman, Chile, Ecuador, Bangladesh, and technology deliveries in Singapore and Norway; chemical recycling plant in Finland delayed to early 2025.

• Order backlog at quarter-end was €158.7 million, including a €55 million NEOM order, and year-to-date order intake reached €120.7 million.

Financial highlights

• Q3 2024 revenue was €30.8 million (–0.9% y/y); adjusted EBIT was €2.1 million (6.7% margin, –30.9% y/y); EPS for Q3: –€0.01.

• January–September 2024 revenue totaled €81.8 million (–6.8% y/y); adjusted EBIT was €3.9 million (4.8% margin, –43.0% y/y); EPS: –€0.04.

• Orders received in Q3 were €35.4 million (+161.7% y/y); 1–9/2024 orders totaled €120.7 million (+255.2% y/y).

• Net cash flow from operations for 1–9/2024 was –€15.6 million; net working capital increased to €83.7–84 million.

• Equity ratio at 34.8% (down from 46.1% y/y); net gearing at 109.1% (up from 51.9% y/y); interest-bearing liabilities at €71.8 million.

Outlook and guidance

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

• Achieving guidance requires strong Q4 performance, with focus on executing deliveries, winning tenders, and improving working capital, especially in Kuwait.

• Strategy update and enhanced sales efforts are planned for the near future.