Newag (NWG) Q3 2024 earnings summary

Executive summary

• NEWAG Group reported strong financial results for the first nine months of 2024, with significant year-over-year growth in revenue and profitability.

• The Group's core business remains the production and modernization of rail vehicles, with a focus on domestic contracts.

• The sale of Galeria Sądecka Sp. z o.o. in June 2024 marked a notable change in the Group's structure.

• A dividend of 0.96 PLN per share was paid in August 2024, totaling 43.2 million PLN.

Financial highlights

• Consolidated revenue for 9M 2024 reached 1,140.3 million PLN, up from 687.8 million PLN year-over-year.

• Net profit rose to 92.0 million PLN from 41.2 million PLN year-over-year.

• EBITDA increased to 152.4 million PLN from 106.2 million PLN year-over-year.

• Operating cash flow was negative at -223.5 million PLN, compared to +124.7 million PLN in the prior year.

• Earnings per share for 9M 2024 were 2.04 PLN, up from 0.91 PLN year-over-year.

Outlook and guidance

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

• The Group remains prepared for delayed or renegotiated receivables, especially regarding PKP CARGO S.A.

• No seasonality is expected; revenue fluctuations are due to contract timing.