LANDI RENZO (LNDR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was €139.1M, down 8.3% year-over-year, mainly due to a 22.9% decline in Clean Tech Solutions caused by project delays and order slowdowns; net loss was €18.5M, slightly improved from €20.9M in H1 2023.

• Green Transportation segment revenue was stable at €102.5M (-1.7%), with improved product mix and marginality, benefiting from Aftermarket and Mid & Heavy Duty OEM channels.

• A financial optimization project was agreed in August 2024, including a €40–45M capital increase and debt rescheduling supported by Invitalia and main shareholders, aimed at improving liquidity and financial stability.

• Going concern assumption is maintained but subject to successful completion of capital increases and a fairness opinion by year-end 2024; financial covenant breaches at June 2024 were resolved by post-period amendments.

• Clean Tech Solutions faces risks from low order intake, higher project complexity, slower revenue recognition, and market immaturity, while group profitability remains sensitive to production volumes and fixed costs.

Financial highlights

• Revenues: €139.1M in H1 2024 vs. €151.8M in H1 2023 (–8.3% year-over-year).

• Adjusted EBITDA: €0.06–0.1M in H1 2024 (0.0% margin), down from €3.9M (2.6%) in H1 2023; reported EBITDA was –€3.7M.

• EBIT: –€11.5M in H1 2024 vs. –€8.8M in H1 2023.

• Net result: –€18.5M in H1 2024 vs. –€20.9M in H1 2023.

• Basic and diluted EPS: –0.0743 in H1 2024 vs. –0.0931 in H1 2023.

Outlook and guidance

• 2024 expected to close with lower results than 2023; management focuses on business initiatives and financial strengthening.

• Green Transportation segment expected to be stable or slightly lower; Clean Tech Solutions to remain challenged due to market immaturity and project complexity.

• Financial structure does not yet reflect the impact of the financial optimization project; capital increase and debt rescheduling expected to improve liquidity and stability.

• Major shareholder's contribution to the capital increase will be available in Q3 2024.