Loihde (LOIHDE) Q2 2024 earnings summary

Executive summary

• Revenue grew 4% year-over-year to €68.4M in H1 2024, with strong performance in security and enterprise network services, while IT consulting and bespoke software development remained challenging.

• Adjusted EBITDA improved significantly to €4.2M (6.1% margin) in H1 2024, up from €0.9M (1.4%) in H1 2023, driven by cost-saving measures and growth in managed services.

• Adjusted operating profit (EBIT) turned positive at €0.2M, compared to a loss of €-2.8M a year earlier.

• Customer satisfaction remains high, with an NPS of 42 from a recent survey.

• Profitability gains were driven by growth in continuous services, especially in security and network operations.

Financial highlights

• Q2 2024 revenue was €35.4M, up 3% year-over-year; adjusted EBITDA rose to €2.6M (7.2% margin), a 153% increase.

• H1 2024 net loss narrowed to €-0.6M (EPS €-0.11), compared to €-3.1M (EPS €-0.54) in H1 2023.

• Cash flow from operating activities improved to €3.9M from €-3.8M in H1 2023.

• Personnel expenses decreased to €34.7M (50.7% of revenue), and other operating expenses fell to €7.7M.

• Investments totaled €3.7M, mainly in customer service equipment.

Outlook and guidance

• 2024 revenue expected to be at or above 2023 levels; adjusted EBITDA forecast to improve from €7.6M in 2023.

• Strategic targets for 2024–2027: average annual revenue growth of 10%, revenue of at least €200M by 2027, adjusted EBITDA margin of 15%, ROI of 10%, and net debt/EBITDA between 0–2x.