Titan (TITC) Q2 2024 earnings summary

Executive summary

• H1 2024 sales rose 7.6% year-over-year to €1,323m, with EBITDA up 16.7% to €281m and net profit up 34.1% to €149m, driven by growth in the US, Greece, and Southeast Europe, supported by stable pricing and operational efficiencies.

• EPS increased to €2.00 from €1.48; EBITDA margin reached 21.3% in H1 and 22% on a 12-month rolling basis.

• Q2 2024 marked the 9th consecutive quarter of EBITDA growth, with sales up 9.1% and EBITDA up 28% year-over-year.

• Continued execution of the Green Growth Strategy 2026, with significant progress in decarbonization, digitalization, and product innovation.

• Net debt reduced to €640m, with leverage at a record low (Net Debt/EBITDA at 1.07x); €20m share buyback program approved and €0.85/share dividend distributed.

Financial highlights

• H1 2024 sales: €1,323m (+7.6% y-o-y); EBITDA: €281m (+16.7% y-o-y); net profit: €149m (+34.1% y-o-y); EPS: €2.00.

• Q2 2024 sales: €699m (+9.1% y-o-y); EBITDA: €172m (+28% y-o-y); net profit: €96m (+45% y-o-y).

• Operating free cash flow for H1 2024 was €110m, up from €77m in H1 2023.

• Net debt reduced by €20m since end-2023; leverage ratio at 1.07x EBITDA.

• Dividend of €0.85/share paid in July 2024; new €20m share buyback program approved.

Outlook and guidance

• Positive outlook for H2 2024 and 2025, with expected stabilization and growth in US residential demand and continued strength in infrastructure and industrial segments.

• Greece and Southeast Europe expected to benefit from strong construction backlogs, public and private investment, and tourism.

• Decarbonization and digitalization initiatives to further support margin and efficiency improvements.

• Turkey and Egypt anticipated to normalize, with investment and reconstruction activity supporting demand.

• Global economic outlook points to stable growth and moderate disinflation through 2025, with tight monetary policy expected to slow growth.