TKH Group (TWEKA) Q4 2024 earnings summary

Executive summary

• Achieved record order book of €1,135.0 million and strong organic turnover growth in Q4, despite a 1.2% organic decline for FY 2024 due to divestments; added value increased to 51.9%.

• EBITA/EBITDA reached €203.9 million, in line with outlook, but down 14% year-over-year; strong R&D investment of over €80 million and €15 million in cost savings implemented.

• Strategic focus sharpened on automation and electrification, with major divestments, portfolio optimizations, and further divestments planned.

• Completed €200 million strategic investment program, enhancing capacity and technology leadership; AI-powered technologies introduced.

• Proceeds from divestments to be used for share buybacks, dividends, and further strategic or core technology investments.

Financial highlights

• Revenue for FY 2024 was €1,712.7 million, with a 1.2% organic reduction; divestments reduced revenue by €125 million, acquisitions added €14 million.

• EBITA/EBITDA excluding one-offs at €203.9 million (down 7.5% organically); ROS at 11.9%.

• Net profit was €99.5 million (down 40% year-over-year); normalized tax rate at 24.4%.

• Net debt increased to €496.0 million; leverage ratio at 2.0; working capital as a percentage of revenue at 17.9%.

• Dividend of €1.50 per share proposed, totaling €67 million; CapEx for plant, property, and equipment close to €100 million.

Outlook and guidance

• Organic growth in turnover and EBITA/EBITDA expected in 2025, with a weak Q1 due to seasonality and ramp-up costs; full-year improvements anticipated in smart vision and connectivity.

• Smart manufacturing expected to see a decrease in turnover and EBITA due to lower order intake in 2024.

• Guidance for subsea remains at €180 million in sales and EBITDA margins well over 16%, including €6–8 million in one-off costs.

• CapEx for 2025 expected to normalize at €50 million for tangibles and €60–70 million for intangibles.

• Full-year 2025 guidance to be updated at interim results in August 2025.