In This Article:
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Revenue: Increased by 18.5% to $170.2 million.
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United States Revenue: Increased by 52% from the prior corresponding period.
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Underlying EBITDA: Up 22% to $25.3 million.
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Net Debt: $10.5 million, after a $21 million increase in steel stocks.
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Order Book: Increased by 22%.
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Interim Dividend: Increased to $0.06 per share, up 50% from the prior period.
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Operating Cash Flow: Outflow of $3.5 million, primarily due to $21 million investment in steel inventory.
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APAC EBITDA Margin: Reached 21%, doubling against the prior year.
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North America EBITDA Growth: Increased by 35%.
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EBIT Guidance: Confirmed at $50 million for the full year.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue increased by 18.5% to $170.2 million, with significant growth in the United States (52%) and APAC regions.
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Underlying EBITDA rose by 22% to $25.3 million, showcasing strong operational performance.
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The order book increased by 22%, driven by strong demand in the Americas and a robust sales pipeline.
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The interim dividend was increased by 50% to $0.06 per share, reflecting confidence in future performance.
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The Austin 2.0 strategy continues to deliver results, with a compound annual growth rate of 30% in EBITDA over the past few years.
Negative Points
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Operating cash flow was an outflow of $3.5 million, primarily due to a $21 million investment in steel inventory.
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The Chilean operations faced challenges with a new OEM contract, impacting margins due to inefficiencies.
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There was a significant increase in subcontractor expenses, particularly in the US and Chile, due to rapid expansion.
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Foreign currency translation differences resulted in a $13 million turnaround, complicating tax situations.
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The company faced potential tariff issues in the US, necessitating supply chain reorganization and increased costs.
Q & A Highlights
Q: Can you explain the significant one-off expenses of $6.8 million and whether they will recur in the second half or FY26? A: David Singleton, CEO, explained that they prefer not to capitalize R&D expenses, opting to write them off as they occur. David Bonomini, CFO, added that some costs related to the Chile expansion and US facility finalization might continue into H2, but the overall expenses will be significantly lower than in H1.
Q: Regarding the inventory build, will it fully reverse by June 30 or December 31? A: David Singleton, CEO, stated they expect a significant reduction in inventory build in the second half as the steel purchased is being consumed. They aim for three to four times stock turns per annum and expect to be closer to that level by the end of June, releasing a lot of cash.