Biesse (BSS) Q3 2024 earnings summary

Executive summary

• Group employs over 4,100 people globally, with 63% of revenues from EMEA and significant presence in Americas and Asia; Q3 2024 revenues reached €560.8m, down 5.9% year-over-year.

• EBITDA declined 29.8% to €44.0m, with adjusted EBIT at €14.5m and net result at €2.6m, an 83.9% drop year-over-year.

• The GMM Group acquisition increased headcount, contributed to revenues and orders, but negatively impacted net result and financial position due to acquisition-related costs.

• Economic environment remains weak, with high inflation, limited GDP growth in most markets except India, and sector downturns, especially in automotive.

• Clients face credit constraints, leading to increased financial holds and delayed machine deliveries.

Financial highlights

• Orders for the first nine months reached €511.2m (including GMM); excluding GMM, orders declined by ~€40m year-over-year.

• Backlog at September 2024 was €276m, stable versus year-end 2023, but down from €290m prior year; GMM contributed €26m.

• Sales for the period were €560.8m, down €120m year-over-year (excluding GMM).

• EBITDA margin was 7.9%, down from 10.5% in Q3 2023; EBIT margin fell to 2.0% from 4.7%.

• Net financial position was positive €4.2m (pre-IFRS 16), negative €28.1m including IFRS 16.

Outlook and guidance

• Revenue and main economic indicators are expected to remain stable in the next quarter and in 2025.

• Management is accelerating strategic projects, focusing on efficiency, connectivity, and automation.

• Labor cost reductions and headcount rightsizing are part of a long-term transformation plan.

• Persistent external uncertainties include restrictive monetary policies, reduced government incentives, and international tensions.