Luotea (LUOTEA) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 declined by 4.0% year-over-year to €384.2 million, impacted by a challenging economic environment and political strikes in Finland.

• Adjusted operating profit for H1 2024 rose 19.6% to €12.7 million, with improvements in Industrial Services and Facility Services Finland.

• Industrial Services achieved strong growth in net sales and profitability, aided by successful annual maintenance and an acquisition in Sweden.

• Facility Services Finland showed improved results due to ongoing turnaround and efficiency measures.

• Facility Services Sweden was negatively impacted by the loss of a major customer contract at the end of 2023, leading to a significant decline in net sales and operating profit.

Financial highlights

• Group net sales for Q2 2024 were €199.2 million, down 4.0% year-over-year; H1 2024 net sales were €384.2 million (-4.0%).

• Adjusted operating profit for H1 2024 was €12.7 million (+19.6%); Q2 2024 adjusted operating profit was €12.7 million (+38.2%).

• Earnings per share for H1 2024 was €0.16, down from €0.24 in H1 2023.

• Net cash flow after investments was -€3.7 million, compared to €19.3 million in the prior year.

• EBITDA for H1 2024 was €37.2 million, a decrease from €38.6 million in H1 2023.

Outlook and guidance

• 2024 net sales and adjusted operating profit are expected to be at or above 2023 levels.

• No significant economic recovery anticipated in 2024; improvement expected in 2025.

• Guidance range depends on execution of restructuring and absence of negative surprises.