Newag (NWG) Q4 2024 earnings summary

Executive summary

• Revenue increased by 29.1% year-over-year to 1,589.4 million PLN, driven by higher sales volume and a robust order portfolio, with EBITDA at 210.8 million PLN (+13.3%) and net profit at 122.7 million PLN (+29.1%).

• The company delivered 54 electric locomotives, 11 electric multiple units, and 4 hybrid multiple units, and signed new contracts worth 7.2 billion PLN, ensuring strong future order backlog.

• The year was marked by successful completion of key contracts, including deliveries to PKP Intercity and other major clients, and the company maintained its IRIS Gold Quality Performance Level certification.

Financial highlights

• Gross margin was 21.1%, slightly down by 0.3pp year-over-year, with gross profit at 335.8 million PLN (+27.6%).

• Operating profit reached 160.4 million PLN (+13.1%), and net cash from operations was -11.1 million PLN, reflecting working capital changes and increased inventories.

• Total assets stood at 1,733.3 million PLN, equity at 881.1 million PLN (+9.8%), and total liabilities at 852.2 million PLN (-8.2%).

• Debt ratios improved: total debt to assets at 49.2% (down 4.5pp), current ratio at 1.6, and net debt/EBITDA at -0.60 at year-end.

• Dividend of 0.96 PLN per share was paid for 2023; no decision yet for 2024.

Outlook and guidance

• The company expects continued strong demand in the domestic market, with new tenders anticipated for electric multiple units and locomotives.

• Strategic focus remains on strengthening market leadership, expanding export activities, and developing new vehicle platforms.

• No formal climate transition plan yet, but 2024 is set as the base year for future emission reduction targets.