Touax (TOUP) H2 2024 earnings summary

Executive summary

• Operating EBITDA grew 7% to €59.0m and restated revenue from activities rose 5% to €165.0m as of December 31, 2024.

• Net income Group share increased to €3.9m (+8%), with consolidated net income at €4.5m, impacted by higher depreciation and financial expenses.

• Dividend proposed at €0.15 per share, a 25% increase, representing 27% of annual net profit.

• Maintained a resilient, recurring business model with 78% of leasing revenue recurrent and high asset utilisation.

• Strengthened ESG profile, earning top-tier EcoVadis and Ethifinance ratings, and implemented new CSR and sustainable finance initiatives.

Financial highlights

• Restated revenue from activities rose 5% to €165.0m; operating EBITDA up 7% to €59.0m, maintaining a 35.7% EBITDA margin.

• Earnings per share increased 8% to €0.56; Group share net income up €0.3m to €3.9m.

• Net income from discontinued operations contributed €1.5m, including a one-time gain from the Modular Buildings sale and a favorable US dispute settlement.

• Net debt increased by €19.0m to €304.7m, driven by new investments, with net cash up €9.9m to €48.9m.

• Operating cash flow decreased 21% to €16.6m, reflecting higher equipment acquisitions.

Outlook and guidance

• Freight railcars: Targeting fleet growth to over 16,000 wagons in 5 years, leveraging European and Indian market opportunities.

• River barges: Aiming to expand fleet to 150+ units, focusing on Europe and the Americas, and capitalizing on decarbonization trends.

• Containers: Expecting 2.9% market growth in 2025, with plans to expand leasing and trading volumes and diversify asset offerings.

• Group ambitions include maintaining ROE >10%, LTV <60%, and delivering ~10% annual shareholder return.

• €80m in third-party investment in advanced discussions for 2025, supporting organic growth.