Arteche Lantegi Elkartea (ART) H2 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenue and order intake, surpassing strategic plan and market guidance for 2024–2026, with revenue at €447.4 million (+11.5% YoY) and order intake at €532.4 million (+12.3% YoY).

• Net profit rose 56.7% to €18.9 million, with EPS at €0.33 (+66.7% YoY).

• Strong performance across all business pillars and geographic regions, except for temporary slowdowns in Latin America.

• ESG initiatives advanced, with improved CDP and EcoVadis scores, carbon footprint reduction, increased renewable electricity use, and higher female representation in management.

• Share price revalued by 88% during 2024.

Financial highlights

• EBITDA grew 26.8% to €51.6 million, with an EBITDA margin of 11.5%, up 140 basis points year-over-year.

• Direct margin improved to 35.5%, up 340 basis points, driven by efficiency, product mix, and pricing.

• Free operating cash flow reached €40 million, with a conversion rate of 78% (before inorganic expenses/dividends); strong free cash flow generation of €24.9 million.

• Dividend payout of 50% of net profit, totaling €6 million, distributed in H1 2024.

• Leverage reduced to 0.5x EBITDA, down from 1x, strengthening the balance sheet.

Outlook and guidance

• Confident in achieving 2026 EBITDA margin target of 12.5–13%, with current trajectory ahead of plan.

• FY2024 revenue guidance was €440–460m; actual revenue reached €447.4m. EBITDA guidance was €45.8–50.6m; actual EBITDA was €51.6m, exceeding the upper end.

• Positive market outlook for 2025, supported by a strong order backlog and robust demand in electrification and digitalization.

• Continued focus on organic and inorganic growth, especially in automation and network reliability, with ongoing capacity expansions in China, Mexico, and Europe.