SIT (SIT) Q3 2024 earnings summary

Executive summary

• 9M 2024 consolidated revenues declined 8.0%–8.1% year-over-year to €222.8M/€220.6M, with Q3 revenues down 4.1%–4.4% to €71.9M/€71.3M.

• Heating & Ventilation 9M sales fell 11.7%, while Metering sales rose 1.8%.

• Q3 2024 saw regional growth in Italy (+11.1%) and America (+23.9%), offset by declines in Europe and Asia/Pacific.

• Net income improved to -€8.3M from -€19.4M in 9M 2023, reflecting lower impairments.

• The company is focusing on cost reduction and structural repositioning to defend profitability.

Financial highlights

• 9M EBIT at -€1.5M, a significant improvement from -€20.2M in 2023, which included a €19.5M asset impairment.

• Net financial charges included a one-off €3.9M charge for amended banking contracts.

• Cash flow from operations turned positive at €3.6M after €11.8M capex.

• EBITDA margin for FY2024 expected to be slightly higher than 2023, but below previous guidance.

• Net financial debt expected between €145M and €150M by year-end.

Outlook and guidance

• Heating & Ventilation FY2024 sales expected to decline low double digits versus 2023, revised from high single digit.

• Metering division sales expected to be in line with FY 2023.

• EBITDA margin anticipated to slightly exceed prior year due to cost controls and production efficiencies.

• EBITDA margin improvement of 100–200 bps previously expected will not be achieved due to lower sales volumes.

• Net financial debt forecasted between €145M and €150M by year-end.