Trakcja (TRK) Q2 2024 earnings summary

Executive summary

• Group specializes in infrastructure construction across Poland, Lithuania, Latvia, and Sweden, focusing on railways, roads, engineering, and energy projects.

• H1 2024 revenue was PLN 757.4 million, down 1.9% year-over-year; net loss narrowed to PLN 10.9 million from PLN 17.6 million in H1 2023.

• Gross profit margin improved to 3.9% (up 0.1 p.p. year-over-year); EBITDA reached PLN 19.4 million, up 9% year-over-year.

• Contracts signed in H1 2024 totaled PLN 1,867 million; order backlog at June 2024 was PLN 3,950 million, up 33% year-over-year.

• Group continues restructuring, focusing on liquidity, profitability, and divestment of non-core assets.

Financial highlights

• Operating profit for H1 2024 was PLN 2.4 million, compared to a loss of PLN 0.5 million in H1 2023.

• Net cash outflow from operations was PLN 203.6 million; cash at period end was PLN 151.2 million, down from PLN 379.0 million at year-end 2023.

• Total assets at June 2024 were PLN 1,344 million, down 9.7% from December 2023; equity declined to PLN 236.5 million.

• Group’s total financial debt (loans, bonds, leasing) at June 2024 was PLN 302.3 million.

• Trakcja S.A. standalone revenue was PLN 399.8 million, with a net loss of PLN 13.6 million.

Outlook and guidance

• Order backlog of PLN 3,950 million provides revenue visibility; focus on contract profitability and liquidity improvement.

• Significant planned public investments in rail and road infrastructure in Poland through 2030 support long-term demand.

• Key risks include refinancing, meeting financial covenants, and successful asset sales.

• Management highlights ongoing negotiations for capital increase and alternative financing.