SPIE (SPIE) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached €7,131 million, up 13.9% year-over-year, with 4.4% organic growth and significant contribution from acquisitions.

• Germany and Global Services Energy led growth, while Central Europe lagged due to project phasing and high prior-year comparison.

• Six bolt-on acquisitions completed year-to-date, adding approximately €432 million in annual revenue.

• EBITA margin guidance for FY24 was revised upwards to at least 7.1% of revenue, a minimum of +40 bps increase, with expected EBITA growth above 20%.

• Continued focus on margin over volume, leveraging high selectivity, quality execution, and mission-critical services.

Financial highlights

• 9M 2024 revenue: €7,131 million, up 13.9% year-over-year; organic growth 4.4%, acquisitions 9.4%, FX 0.2%.

• Q3 2024 revenue grew 13.1% year-over-year, with 1.7% organic growth.

• Germany posted 33% revenue growth (5.9%-6% organic, 27.1% from acquisitions); Northwestern Europe grew 9% (6.4% organic); France saw 1.5% organic growth; Central Europe had -1.6% organic growth.

• Global Services Energy delivered 19.7% organic growth, with a 10.3% contribution from the Correll Group acquisition.

• Revenue bridge shows €6,259 million in 9M 2023 to €7,131 million in 9M 2024, with minimal FX impact.

Outlook and guidance

• FY 2024 EBITA margin guidance raised to at least 7.1% of revenue, up from previous 7.0%, with EBITA growth expected above 20%.

• Further organic growth expected in Q4 2024, though at a slower pace than 2023.

• Dividend payout ratio to be maintained at approximately 40% of adjusted net income.

• Dynamic bolt-on M&A strategy to continue as a core business model element.