LU-VE (LUVE) Q3 2024 earnings summary

Executive summary

• EBITDA improved to €64.1M (14.6% margin) despite a 5.6–5.9% YoY sales drop, with Q3 sales up 6.3% excluding heat pumps.

• Net income for 9m-24 was €26.8M–€30.5M, slightly down YoY due to a higher tax rate.

• Order book reached €172M, up 10.1% vs December 2023; focus on automation and cost controls.

• Growth capex ongoing in China and USA for datacenter and industrial cooling; organizational changes to boost effectiveness.

• Underlying product sales grew 2.6% in 9m-24, despite heat exchanger weakness.

Financial highlights

• 9m-24 sales: €432.8M–€438.4M, down 5.6–5.9% YoY; Q3-24 sales up 6.3% excluding HP.

• Adjusted EBITDA rose 4.6% to €64.1M (14.6% of sales); Q3-24 EBITDA margin at 14.9%.

• Adjusted net income for 9m-24 at €28.2M–€30.5M, mainly due to higher tax rate.

• Net financial debt at €125.8M, leverage at 1.54x EBITDA vs 2.1x in September 2023.

• Net cash generation from operations in 9m-24 was €51.6M (11.8% of sales), up 18.1% YoY.

Outlook and guidance

• Focus on datacenter and industrial projects, automation, and supply chain optimization.

• Second stage of plant expansion in China completed; US expansion ongoing.

• Anticipated recovery in heat pump and nuclear applications from H2-2025.

• Continued M&A search and integration of Refrion; emphasis on cost efficiency and margin expansion.

• Medium- and long-term growth expectations confirmed, with optimism for data center and tumble dryer segments.