Technotrans (TTR1) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was €175.5M, down 12% year-over-year, mainly due to a weak economy, but quarterly sales are recovering sequentially.

• EBIT margin improved to 4.3% for the nine months, with Q3 adjusted EBIT margin reaching a five-year high of 6.9%.

• Energy Management segment grew 27% year-over-year to €25.8M and now represents 15% of group revenue, offsetting declines in other markets.

• Efficiency program TT Sprint is on track, with all milestones achieved and visible cost savings; restructuring led to one-off costs of €1.3M YTD, expected to reach €2M for the full year.

• Strategic wins include major orders in energy management, e-bus battery thermal management, rail electrification, and a new framework agreement for data center liquid cooling.

Financial highlights

• Q3 2024 revenue was €60.2M, up 2% sequentially from Q2.

• EBIT for Q3 was €3.6M (5.9% margin); nine-month EBIT was €7.6M (4.3% margin), down from €10.1M (5.1%) last year; adjusted EBIT was €8.9M (5.1%).

• Net income declined from €5.6M to €4.6M year-over-year; EPS fell from €0.81 to €0.66.

• Gross margin improved to 27.3% from 26.4% due to higher service share and efficiency gains.

• Free cash flow was €0.2M, down from €3M year-over-year.

Outlook and guidance

• 2024 revenue expected at the lower end of €245M–€270M, with EBIT margin at the lower end of 5.5%–7.5%, excluding €2M restructuring costs.

• 2025 guidance revised down: revenue €245M–€265M, EBIT margin 7%–9%, ROCE 13%–16%, reflecting a weaker economic outlook.

• Midterm guidance adjusted due to persistent economic headwinds; further details on new strategy expected next year.

• No significant economic recovery expected in Q4 2024; Energy Management to remain a growth driver.

• Guidance assumes stable geopolitical and economic conditions.