Schoeller-Bleckmann Oilfield Equipment (SBO) H2 2024 earnings summary

Executive summary

• 2024 sales reached EUR 560 million (MEUR 560.4), the second-best year in company history, with solid profitability despite a 4.3% sales decline year-over-year and challenging market conditions, especially in the US and AMS division.

• Maintained global leadership in high-precision components and high-tech equipment for the energy sector, with a strong IP portfolio and customer-centric innovation, operating at 20+ locations with approximately 1,600 employees worldwide.

• Free cash flow doubled to EUR 67 million (MEUR 66.8), cash position increased to EUR 315 million, and net debt reduced to EUR 56 million, with a gearing ratio of 11%.

• The company recalibrated its strategy, focusing on diversification, technology leadership, operational excellence, and measurable targets, including a refreshed corporate identity.

• OE division rebounded with strong international growth, especially in the Middle East and Latin America, and performance improvements through operational and organizational measures.

Financial highlights

• EBIT for 2024 was EUR 70 million (MEUR 70.1), with an EBIT margin of 12.5%, down from 17.5% in 2023; EBITDA margin was 18.2%.

• Net income/profit after tax was EUR 45.3 million, down from EUR 71.6 million in 2023; EPS was EUR 2.88 (2023: EUR 4.55).

• Bookings declined 11% to EUR 483.7 million, and backlog fell to EUR 141.8 million.

• Proposed dividend of EUR 1.75 per share, a 12% reduction, with a payout ratio of 61%.

• CAPEX for 2024 was EUR 35 million (MEUR 34.6), focused on Vietnam expansion, 3D metal printing, and rental fleet upgrades.

Outlook and guidance

• Market environment in 2025 remains volatile and complex due to policy changes, geopolitical uncertainties, and global trade tensions, with continued moderation in AMS customer spending expected.

• OE division is expected to continue its improved performance, focusing on high-growth regions and diversification.

• Long-term, energy demand is projected to grow, with a sizable share for oil and gas, and energy transition gaining traction.

• By 2030, the target is EUR 900 million in sales, with EUR 200 million from new industries and an EBITDA margin above 20%.

• No direct impact from enacted or announced policy changes so far.