Newag (NWG) Q2 2024 earnings summary

Executive summary

• Consolidated revenue for H1 2024 reached PLN 575.3m, up 29.5% year-over-year, with net profit at PLN 46.7m, a 15.3% increase compared to H1 2023.

• EBITDA for H1 2024 was PLN 80.1m, down from PLN 89.1m in H1 2023, reflecting higher operating costs.

• The Group's main business is the production and maintenance of rail vehicles, with no significant seasonality in operations.

• A significant contract was signed post-period with PKP Intercity for 35 dual-mode trainsets worth PLN 2.74bn, deliveries in 2027–2029.

Financial highlights

• Net sales: PLN 575.3m in H1 2024 vs. PLN 444.4m in H1 2023.

• Net profit: PLN 46.7m in H1 2024 vs. PLN 40.5m in H1 2023.

• EBITDA: PLN 80.1m in H1 2024 vs. PLN 89.1m in H1 2023.

• Operating cash flow: PLN -317.1m in H1 2024 vs. PLN 129.0m in H1 2023, mainly due to increased working capital needs.

• Earnings per share: PLN 1.04 in H1 2024 vs. PLN 0.90 in H1 2023.

Outlook and guidance

• Management sees no threat to business continuity and expects stable operations.

• The new PKP Intercity contract and a framework agreement with Koleje Małopolskie (up to PLN 1.13bn) are expected to support future revenue.

• No significant impact from the war in Ukraine is anticipated for 2024.