TREVI - Finanziaria Industriale (TFIN) H1 2024 earnings summary

Executive summary

• 1H24 results were impacted by project delays in Saudi Arabia, USA, and the Philippines, but performance remained resilient and in line with expectations due to business diversification and strong market exposure.

• Order backlog reached €788.9M at June 2024, up 9.6% from December 2023 and covering 83% of 2024 expected revenues, marking the highest level since 2016.

• Net profit remained positive at €0.6M, sharply down from €27.6M in 1H23 due to non-recurring items in the prior year.

• Soilmec Division achieved a successful turnaround with revenues up 17.1% and margin recovery, while Trevi Division was impacted by project delays.

• Sustainable development and ESG initiatives advanced, with new certifications and external recognition.

Financial highlights

• Group revenues at €262.3M, down 6.4% year-over-year; up 4.8% excluding NEOM project.

• Recurring EBITDA at €26.9M (10.2% margin), down 17.3% year-over-year; EBIT dropped 61.2% to €7.9M.

• Net profit at €0.6M, sharply lower than €27.6M in 1H23 due to non-recurring items.

• Net financial debt at €207.7M, up from €202M at 2023 year-end.

• Ordinary Free Cash Flow from Operations positive at €7.9M.

Outlook and guidance

• 2024 revenue expected between €639M and €665M; recurring EBITDA forecasted at €76M–€82M; net financial debt projected between €210M and €225M by year-end.

• Order backlog covers ~90% of expected 2024 revenue for Trevi Division and 62% for Soilmec.

• Anticipated improvement in H2 2024 as delayed projects ramp up and new orders are secured.

• Forecasts subject to exogenous risks and market volatility.