Troax Group (TROAX) Q2 2024 earnings summary

Executive summary

• Order intake grew 6% year-over-year to €69.6m, driven by acquisitions and structural growth, despite market headwinds and mixed regional demand.

• Revenues increased 5% year-over-year to €71.9m, with acquisitions contributing 8% to growth.

• EBITA margin remained resilient at 16.8% despite lower organic volumes and higher one-off SG&A costs.

• Cash flow remained strong, inventories reduced, and the balance sheet is robust for future investments.

• Acquisition of Czech Republic distributor completed post-Q2 to support growth in Eastern Europe.

Financial highlights

• Q2 2024 order intake: €69.6m (+6% y/y); revenues: €71.9m (+5% y/y), with -3% organic and +9% structural growth.

• EBITA: €12.1m (down from €13.0m in Q2 2023); EBITA margin: 16.8% (down from 19.0%).

• Adjusted EPS decreased from €0.16 to €0.14 year-over-year.

• Working capital increased 2% year-over-year but improved as a percentage of sales (21.1% to 20.5%).

• Net debt at period end: €66.1m (up from €40.1m last year); net debt/EBITDA: 1.1x (target <2.5x).

Outlook and guidance

• Market demand remains stable but at a lower level than last year; uncertainty persists due to macroeconomic and political factors.

• Automotive segment expected to maintain robust demand in U.S. and Europe.

• Construction in Nordics, especially Sweden, likely to remain weak through 2025 and into 2026.

• Automated warehousing recovery anticipated late this year or early next year, but at a more cautious pace.

• No expectation of recurring one-off SG&A costs in H2.