LANDI RENZO (LNDR) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenues declined 3.4% year-over-year to €68.8M, with a net loss of €8.99M, improving from €9.94M in Q1 2023.

• Green Transportation revenue rose 6.2% to €51.0M, driven by After Market (+12.7%) and Mid & Heavy Duty OEM channels, improving product marginality and sales mix.

• Clean Tech Solutions revenue fell 23.2% to €17.8M due to project delays, complex jobs, and lower traditional CNG volumes, with adjusted EBITDA at around -€0.5M to -€0.6M.

• Adjusted EBITDA loss narrowed to about -€0.5M from -€1.0M, driven by Green Transportation's performance; net financial position worsened to -€130M due to working capital absorption and delayed factoring.

• Management implemented mitigating plans including engineering and purchasing anticipations; a new 2024–2028 business plan and financial optimisation project with planned capital increases up to €45M were approved.

Financial highlights

• Consolidated revenue: €68.8M, down 3.4% year-over-year; Green Transportation €51M (+6.2%), Clean Tech Solutions €17.8M (-23.2%).

• Adjusted EBITDA: approximately -€0.5M (margin around -0.7%); EBITDA: about -€1.6M.

• Net loss: -€8.99M, improved from -€9.94M in Q1 2023; basic and diluted EPS: -€0.0440.

• Free cash flow negative at -€18.4M, mainly due to operational losses and investments.

• Net financial position increased by €17.6M to -€130M, driven by working capital absorption and Clean Tech Solutions' low profitability.

Outlook and guidance

• 2024 expected to reflect 2023 trends, with a more balanced sales mix in Green Transportation and gradual recovery in Clean Tech Solutions, especially in H2 2024 as biomethane and hydrogen projects progress.

• Spare Parts & Service in Clean Tech Solutions performed above expectations, with a positive outlook.

• Management is executing mitigating plans including anticipating engineering and purchasing activities.

• New 2024–2028 business plan focuses on business and financial initiatives, including up to €45M capital increases and debt rescheduling.