Powersoft (PWS) H1 2024 earnings summary

Executive summary

• Revenue grew 11.9% year-over-year to €36.9 million in H1 2024, with strong gains in the U.S. (+30.9%) and Europe (+5.8%), driven by both Install and Live sectors.

• EBITDA rose 14.7% to €9.9 million (27.2% margin), and net profit increased 20% to €6.3 million (17.2% margin).

• Strategic repositioning from product company to solution provider, supported by R&D investments and expansion into new markets, is delivering results.

• Maintains a robust international presence, with 67 distributors in 138 countries and significant revenue contributions from Europe (48.6%) and North America (31.9%).

• Strategic partnership with Ferrari and high-profile projects such as Sphere Las Vegas highlight technological leadership and brand strength.

Financial highlights

• Consolidated revenues reached €36.9 million in H1 2024, up 11.9% from H1 2023.

• EBITDA rose 14.7% year-over-year to €9.9 million, with margin improving to 27.2% from 26.5%.

• EBIT increased 16.5% to €8.5 million, with a margin of 23.2%.

• Net profit grew 20% to €6.3 million, and net financial position remains cash positive at €5.4 million after €10.7 million dividend distribution.

• Cost of sales rose 10.3% due to higher sales volumes; commercial expenses decreased due to postponed trade fairs.

Outlook and guidance

• Bright outlook supported by a solid order book, continued growth in installed and live sectors, and ongoing investments in R&D, sustainability, and global expansion.

• Focus on expanding presence in US, UK, Germany, Latin America, and direct operations in China, Japan, and Middle East.

• Market for installed applications expected to exceed €1B by 2030, with the company outperforming market average in recent years.

• Inventory and working capital increased due to higher procurement, but are expected to normalize as excess demand subsides.

• Despite macroeconomic uncertainties and geopolitical tensions, continued investment and consolidation are planned for 2024.