Loihde (LOIHDE) Q3 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year in Q3 2024 to €31.5 million, driven by security and network services.

• Adjusted EBITDA for Q3 was €2.9 million, stable compared to last year, representing 9.3% of revenue.

• Security solutions and continuous network services showed strong growth, while IT consulting revenue continued to decline.

• Market conditions remain challenging, with cautious customer spending and increased price competition in IT consulting.

Financial highlights

• Q3 2024 revenue: €31.5 million (up 5% year-over-year); Q1–Q3 revenue: €99.9 million (up 5%).

• Q3 EBITDA: €2.8 million; Q1–Q3 EBITDA: €6.4 million (up from €3.2 million year-over-year).

• Q3 Adjusted EBITDA: €2.9 million (9.3% margin); Q1–Q3 Adjusted EBITDA: €7.1 million (7.1% margin).

• Profitability improved year-over-year due to efficiency gains, but growth has leveled off.

Outlook and guidance

• 2024 revenue expected to be flat or grow versus 2023; adjusted EBITDA to improve from €7.6 million in 2023.

• Growth expectations for the rest of 2024 are cautious due to market conditions and front-loaded project revenue.