Troax Group (TROAX) Q4 2024 earnings summary

Executive summary

• Q4 2024 order intake grew 12% year-over-year (5% organic), with strong performance in North America and the UK, while Continental Europe and New Markets declined.

• EBITA/EBITDA margin remained solid at 17.2% despite lower volumes and FX headwinds.

• Net debt/EBITDA improved to 0.8, supported by strong operational cash flow and a robust balance sheet.

• Strategic progress included the acquisition of ST&L, enhancing service offerings in machine safety and risk management.

• Dividend proposal of EUR 0.34 per share, representing 60% of net income excluding amortizations.

Financial highlights

• Q4 2024 order intake reached EUR 68 million, up 12% year-over-year; sales were flat at EUR 66.7 million.

• EBITDA/EBITA was EUR 11.5 million (17.2% margin), down from EUR 13.4 million (20.1%) in Q4 2023.

• Adjusted EPS was EUR 0.15 (Q4), and full-year adjusted EPS after dilution was EUR 0.57.

• Free operating cash flow was EUR 14.4 million; working capital at EUR 56.7 million (-4% YoY).

• Net debt reduced to EUR 49.8 million; strong cash position at EUR 29.5 million.

Outlook and guidance

• Market demand remains mixed, with stable but weak conditions in Europe and expectations for continued growth in North America and APAC.

• Pre-sales activities in Warehousing and Active Safety segments are expected to convert to orders in 2025.

• Strategic investments in North America to increase capacity and efficiency, ramping up in 2026.

• Service offering, including ST&L, is expected to grow as a share of group sales over the next five years.

• Board proposes maintaining dividend at EUR 0.34 per share.