Lisi Group (FII) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 sales of €903.6 million, up 10.0% year-over-year, driven by strong aerospace market ramp-ups and improved financial indicators.

• EBITDA rose 38.3% to €107.2 million; EBIT increased 46.2% to €54.0 million; net income attributable to equity holders more than doubled to €31.6 million.

• Free Cash Flow improved by €28.5 million year-over-year, though remained negative at -€13.3 million due to increased working capital needs.

Financial highlights

• Sales grew 10.0% year-over-year, with a 10.2% increase on a like-for-like and constant exchange rate basis.

• EBITDA margin improved by 2.5 points to 11.9% of sales; EBIT margin rose to 6.0% from 4.5%.

• Diluted EPS reached €0.68, up from €0.29 in H1 2023.

• Operating cash flow increased to €86.0 million (9.5% of sales), supporting €55.5 million in CAPEX.

• Net debt rose to €538.0 million, representing 55.6% of equity and 2.6x annualized EBITDA, well below covenant limits.

Outlook and guidance

• Annual targets for EBIT and Free Cash Flow are confirmed despite a volatile environment.

• Aerospace division expects continued strong demand and focus on resolving bottlenecks, reducing inventories, and finalizing inflation compensation negotiations.

• Automotive division anticipates a slowdown in H2 amid industry changes and price pressures, requiring continued adaptation and new product ramp-ups.

• Medical division expects to recover part of H1 delays in H2, with robust order books and focus on expanding US production capacity.