STEICO (ST5) Q2 2024 earnings summary

Executive summary

• Sales for H1 2024 reached €190.8 million, nearly matching the previous year, reflecting stabilization in demand despite a weak construction market.

• EBITDA rose 52.6% to €45.9 million and EBIT doubled to €32.0 million, mainly due to significant currency hedging gains.

• Management expects these currency gains to be non-recurring, with additional costs anticipated as the new Gromadka plant ramps up.

• Leadership changes include the appointment of Aiveen Kearney as CEO from July 2024, succeeding Udo Schramek.

Financial highlights

• Revenue for H1 2024 was €190.8 million, up 0.4% year-over-year.

• EBIT for H1 2024 was €32.0 million, a 99.9% increase compared to H1 2023.

• Net income for H1 2024 was €19.8 million, up from €9.0 million in H1 2023.

• Cost of materials fell to €92.8 million from €118.1 million, driven by €19.8 million in currency hedging gains.

• Equity increased to €337.1 million as of June 30, 2024, with an equity ratio of 54.4%.

Outlook and guidance

• Management forecasts full-year 2024 sales at the previous year's level of around €365 million.

• EBIT for 2024 is expected between €45 million and €50 million, supported by H1 currency gains.

• Additional expenses are expected in H2 2024 as the Gromadka plant becomes operational.