Raute (RAUTE) Q2 2024 earnings summary

Executive summary

• Achieved all-time high quarterly net sales of EUR 57.1 million in Q2 2024, up 94.5% year-over-year, with strong profitability improvement and a robust order book of EUR 223 million at period end.

• Net sales for H1 2024 reached EUR 101.7 million, a 53.8% increase from H1 2023, driven by Wood Processing and Services segments.

• Raised 2024 guidance for net sales to EUR 185–210 million and comparable EBITDA to EUR 13–17 million, reflecting strong project deliveries and service business performance.

• Market environment remains challenging, but a strong order backlog and improved operational efficiency support positive outlook.

Financial highlights

• Q2 2024 comparable EBITDA was EUR 5.4 million (9.4% margin), up from EUR 0.7 million (2.5%) in Q2 2023.

• H1 2024 operating profit was EUR 5.4 million, compared to a loss of EUR 0.2 million in H1 2023.

• Earnings per share for H1 2024 were EUR 0.76, up from EUR -0.07 in H1 2023.

• Cash and cash equivalents at period end were EUR 37.3 million; operating cash flow was EUR -8.5 million, impacted by net working capital changes.

• Equity ratio at 48.5% (down from 57.3% a year ago); gearing at -73.1%.

Outlook and guidance

• 2024 net sales expected between EUR 185–210 million and comparable EBITDA between EUR 13–17 million, upgraded from previous guidance.

• Strong order backlog and better-than-expected project and service business performance underpin the improved outlook.