Brunel International (BRNL) H1 2024 earnings summary

Executive summary

• Q2 2024 revenue increased by 6% year-over-year to €346 million (4% organic), with H1 2024 revenue up 8% to €696 million (8% organic).

• Gross profit was stable in Q2 (€65 million), but declined 4% organically; H1 gross profit was flat year-over-year, with gross margin falling 1.2 ppt to 18.8% in Q2.

• EBIT decreased 2% in Q2 (down 20% organically) and 6% in H1 (down 2% organically), reflecting margin pressure; net profit for H1 2024 was €14.9 million, down 6%.

• A cost-saving program targeting at least €20 million in annual savings is nearly complete, with most execution in Q3 and one-off costs of ~€4 million.

• CEO Jilko Andringa announced his resignation in July 2024; succession planning is in progress.

Financial highlights

• Q2 EBIT: €10.9 million (down 2% YoY, down 20% organically); H1 EBIT: €25.1 million (down 6%); H1 2024 net profit: €14.9 million (down from €15.9 million in H1 2023); EPS at €0.30 (2023: €0.32).

• Gross margin declined to 19% in H1 2024 from 21% in H1 2023; Q2 gross margin: 18.8% (down 1.2 ppt YoY); Q2 conversion ratio: 16.7%.

• Net debt at 30 June 2024 was €12.1 million, compared to €31.8 million net cash at year-end 2023; €40 million in new loans drawn in H1 2024.

• Free cash flow improved to near zero in H1 2024 from -€41 million in H1 2023.

• Dividend of €0.55 per share paid in June 2024; €26.1 million dividend paid to shareholders.

Outlook and guidance

• Most regions expected to maintain current trends; DACH and Asia may see stable or slightly lower revenue until delayed projects start.

• Cost savings of at least €20 million targeted, with most initiatives executed in Q3 and one-off costs of ~€4 million in 2024.

• EBIT for next year projected to increase by €15 million due to cost savings.

• Robust pipeline in renewables for H2 2024; capital investment commitments remain high globally.

• Confident in achieving multi-year financial targets set at Capital Markets Day.