Konecranes (KCR) Q2 2024 earnings summary

Executive summary

• Achieved record-high comparable EBITA/EBITDA margin of 14.3% in all business segments for Q2 2024, driven by strong sales execution, volume leverage, price inflation management, and strategy execution.

• Net sales increased by 13% year-over-year to over €1 billion in Q2, with growth in EMEA and Americas, but a decline in APAC.

• Order intake for Q2 was €968 million, down 11.5% year-over-year, but the highest in the last four quarters; order book at quarter-end was nearly €3 billion.

• Net profit for Q2 rose 76.2% year-over-year to €99.7 million, with EPS at €1.26.

Financial highlights

• Comparable EBITA/EBITDA reached €147.3 million in Q2, up nearly 50% year-over-year, with margin up 3.5pp to 14.3%.

• Gross margin and operating margin improved year-over-year; Q2 operating margin (EBIT) was 13.4%.

• Net working capital at €458 million (11.2% of rolling 12-month sales), within target but up sequentially, impacting free cash flow.

• Net debt at €438 million, gearing at 26.8%, and return on capital employed exceeded 20%.

• Free cash flow for Q2 was €21.5 million, down from €114.0 million in Q2 2023.

Outlook and guidance

• Net sales for 2024 expected to remain at or above 2023 levels, with upgraded profitability guidance.

• Comparable EBITA/EBITDA margin for 2024 expected to improve versus 2023.

• Demand environment in industrial segments remains healthy and stable, though interest rates are causing longer decision times for large projects.

• Global container throughput remains high with positive long-term prospects.