Loihde - Top- and bottom-line estimates beat
Loihde’s Q2 was better than anticipated. Net sales grew a modest 3% to EUR 35.4m (Evli EUR 34.9m), and with operative costs slightly down from previous year levels the adj. EBITDA as a result improved to EUR 2.6m (Evli EUR 1.9m, Q2/23: EUR 1.0m).
- Group results: Loihde’s net sales were slightly above our expectations. Net sales in Q2 grew by 3% y/y to EUR 35.4m (Evli: EUR 34.9m). The growth was driven by Security Solutions and Cyber, Cloud & Connect, both showing double-digit growth y/y when looking at H1 figures, while Data & AI and Digital Services showed double-digit declines. Adj. EBITDA beat our estimates driven by the higher sales growth and amounted to EUR 2.6m (Evli: 1.9m), reflecting a margin of 7.3% and improving clearly y/y (Q2/23: EUR 1.0m).
- Loihde noted continued positive momentum for the continuous services related to security and business networks in Q2, with earlier signed contracts in production as planned. Loihde entered into several new continuous service agreements with both public and private sector clients. Growth has been driven by services such as cyber surveillance and network operations control.
- Loihde noted continued challenges in the market bespoke software development and in some data consultancy, lower than targeted utilization rates weighing on the profitability of the company as a whole.
- 2024 guidance (reiterated): Group revenue is expected to be on par with the previous year or grow. The Group’s adjusted EBITDA is estimated to improve compared to 2023, when it was EUR 7.6m.