Half Year 2024 Alten SA Earnings Call Transcript
Key Points
- Alten (STU:AN3) reported a growth in the number of engineers, increasing from 50,000 to 51,480, indicating a positive trend in workforce expansion.
- The company achieved a 2.9% global growth in revenue, supported by mergers and acquisitions.
- Alten (STU:AN3) maintained a strong presence in the engineering sector, representing 73% of its business, and is ranked among the top five globally for engineering services.
- The defense, security, and naval sectors showed strong growth, compensating for weaknesses in other areas.
- The company has a healthy financial structure, generating EUR98 million in free cash flow, which supports its internal and external growth strategies.
- The EBIT margin declined to 8.4% from the usual target of around 10%, primarily due to a decrease in business levels and increased SG&A expenses.
- Alten (STU:AN3) faced challenges in the IT services sector, with significant pressure to reduce costs, impacting 27% of its business.
- The automotive sector experienced postponements and financial constraints, affecting revenue and project timelines.
- The company encountered difficulties in mergers and acquisitions, with high prices and limited availability of target companies.
- There is a slowdown in organic growth, with expectations of only 0.5% to 1% growth for the year, reflecting ongoing market challenges.
Good morning, everyone. We're delighted to present the first half results for the year 2024, even if they're not extraordinary and not at the level expected because of the current situation, as was already published yesterday. So we have results that are exceptionally lower than what we usually obtain.
So the first half of this year, we had an EBIT above 9% for the past year's, above 10% usually, and we always target an EBIT at around 10% for our business. Last year, we were close to this. We intended to get back to the norm during this year 2024 and we were hoping for a recovery, an interesting recovery on businesses, sectors that had been blocked or delayed during the year 2023.
We suffered a lot during 2023 for IT services and in some specific sectors, and I will comment on this a little bit later on. But we thought that engineering would make up for that because it was promising, but the promises that even our best clients had made were not honored because our aeronautics
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
