thyssenkrupp nucera (NCH2) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly sales of €236 million in Q3, driven by strong execution in both chlor-alkali (CA) and alkaline water electrolysis (AWE) businesses, with resilient profitability.

• Order intake rose 12% year-over-year to €271 million, mainly from AWE projects such as H2 Green Steel, with a robust order backlog of €1.3 billion at quarter-end.

• Major project milestones included first green hydrogen production at CF Industries, cell assembly workshop launch in NEOM, and workforce expansion by 40% to 944 employees.

• Full-year 2023/24 sales and EBIT guidance confirmed, but AWE business outlook for 2024/25 withdrawn due to market uncertainties and regulatory delays.

• Net income for Q3 was €5.8 million, nearly flat year-over-year; 9M net income dropped to €1.4 million.

Financial highlights

• Q3 group sales up 26% year-over-year to €236 million; 9M sales up 24% to €612 million.

• Q3 EBIT at €0.7–1 million, down from €7 million prior year, mainly due to lower gross margin and higher OpEx; 9M EBIT at -€10.8 to -€11 million.

• Q3 EPS at €0.05; 9M EPS at €0.01.

• Net financial assets at €694 million as of June 30, 2024.

• Q3 gross margin at 10.2% of sales; Q3 operating cash flow at -€45.2 million.

Outlook and guidance

• FY 2023/24 group sales expected between €820 million and €900 million, with AWE sales between €500 million and €550 million.

• Group EBIT expected to be negative in the mid double-digit million euro range, mainly due to Germany segment and AWE ramp-up costs.

• Q4 sales to grow, but CA division sales to normalize after a strong Q3; EBIT to be impacted by higher R&D and start-up costs.

• No maintained guidance for AWE business in 2024/25 due to regulatory and market delays; more AWE project FIDs expected from spring 2025.