Troax Group (TROAX) Q3 2024 earnings summary

Executive summary

• Order intake grew by 8% year-over-year, with growth driven by acquisitions and strong performance in North America and New Markets, while organic order intake declined 1% and Northern Europe remained weak.

• Sales increased 12% year-over-year to €69.0m, with 10% from acquisitions and 2% organic growth.

• EBITA/EBITDA margin was 19.7%, slightly below last year's 20.9%, but in line with internal targets.

• Strong operating and free cash flow, with net debt/EBITDA at 0.9, enabled further investments and reduced leverage.

• Strategic milestones included the inauguration of a new factory in China, expansion in Eastern Europe via a Czech distributor acquisition, and announced investments in North American capacity.

Financial highlights

• Q3 2024 order intake: €67.0m (+8% YoY); sales: €69.0m (+12% YoY); EBITA: €13.6m (+6% YoY); EBITA margin: 19.7%.

• Q3 profit after tax: €8.9m (unchanged YoY); adjusted EPS after dilution: €0.16.

• Working capital: €58.9m, up from €56.9m, but down as a percentage of sales.

• Free operating cash flow: €13.7m in Q3.

• Net debt: €56.8m at period end; net debt/EBITDA: 0.9, below the target of 2.5.

Outlook and guidance

• Automated warehousing market activity increased in Q3, with positive expectations for 2025 and 2026.

• Mixed demand outlook in Europe, with continued weakness in the Nordics and German-speaking regions, but stable or improving trends in Southern Europe, North America, and Asia.

• Ongoing review of costs and efficiency measures in preparation for 2025.

• Strategic focus on capacity expansion in North America and efficiency improvements, with production ramp-up targeted for 2026.