Trakcja (TRK) Q3 2024 earnings summary

Executive summary

• Trakcja Group operates in infrastructure and general construction across Poland, Lithuania, Latvia, and Sweden, with 75 years of experience and a diversified portfolio.

• Consolidated net profit for the nine months ended 30 September 2024 was 10.8 million PLN, up 0.7 million PLN year-over-year.

• New contracts signed in the first three quarters totaled 2,455 million PLN, with an order backlog of 3,882 million PLN as of 30 September 2024.

• The group continued its Recovery Plan, focusing on financial improvements and internal optimization.

• Significant management and supervisory board changes occurred, including a new CEO appointment effective December 2024.

Financial highlights

• Consolidated sales for the first three quarters of 2024 were 1,366.9 million PLN, down 0.5% year-over-year.

• Gross profit from sales was 70.8 million PLN, with a gross margin of 5.2%.

• EBITDA reached 56.9 million PLN, with an EBITDA margin of 4.2%.

• Net cash flow was negative at -222.4 million PLN, with cash at period end at 156.7 million PLN.

• The parent company, Trakcja S.A., reported a net loss of 19.3 million PLN, with sales down 6.1% year-over-year.

Segment performance

• Railway contracts in the order book totaled 2,182 million PLN, road and bridge contracts 1,353 million PLN, and energy contracts 304 million PLN.

• In the first three quarters, signed contracts included 1,181 million PLN in railway, 1,205 million PLN in road/bridge, and 34 million PLN in energy projects.

• Civil engineering (Poland) and engineering/concessions (Baltic countries) are main segments, with significant revenue from large clients.

• In Q3, Trakcja S.A. saw a 10% year-over-year drop in sales and a decline in gross profit margin to 2.4% from 8.2%.

• AB Kauno Tiltai and PRK 7 Nieruchomości contributed positively to gross profit in Q3.