Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Solutions 30 SE (FRA:30L3, Financial) recorded a slight growth of 0.7% in adjusted EBITDA despite a 5.8% drop in revenue, indicating improved operational efficiency.
- The company achieved a significant improvement in its adjusted EBITDA margin, increasing by 40 basis points to 7.5% in 2024.
- Solutions 30 SE (FRA:30L3) reported a positive net free cash flow of €5.9 million in 2024, a substantial improvement from a negative €17 million in 2023.
- The company successfully refinanced its bank debt with a €120 million facility, extending the maturity to seven years, which strengthens its financial stability.
- The energy segment showed strong growth, with revenues up by more than 28%, driven by favorable market trends in renewable energy sources.
Negative Points
- Overall revenues for Solutions 30 SE (FRA:30L3) decreased by 5.8% in 2024 compared to 2023, reflecting challenges in maintaining top-line growth.
- The company faced a decline in the connectivity segment, with revenues dropping by 12.1% due to a strategic focus on profitability over revenue growth.
- Non-recurring items amounted to €13.4 million, reflecting restructuring costs and impacting the net result negatively.
- The financial result was negatively impacted by rising interest rates, leading to increased financial expenses related to bank debt and IFRS 16 leases.
- The consolidated net result was a loss of €15.1 million, heavily impacted by amortization and restructuring costs.
Q & A Highlights
Q: What is the amortization period for customer relations?
A: The amortization of customer relations occurs over the life cycle of the contracts. Currently, half of the value has been amortized, with approximately €70 million remaining to be amortized in the medium term. (Respondent: Unidentified_2)
Q: When will Solutions 30 SE become profitable? Will it be in 2025?
A: The reorganization in 2024 cost nearly €15 million in extraordinary items, which will not recur in 2025. The expectation is for significantly lower non-current costs in 2025, leading to progress in net results. (Respondent: Unidentified_2)
Q: How will the €500 billion infrastructure investment plan in Germany affect Solutions 30 SE?
A: The investment plan is significant for Solutions 30 SE, as Germany is behind in infrastructure investments. The company is well-positioned in telecoms and energy sectors, expecting regular growth and opportunities in solar, charging stations, and electrical distribution networks. (Respondent: Unidentified_2)
Q: Will there be an increase in adjusted EBITDA in 2025?
A: Improving margins is a priority, and while guidance for 2025 hasn't been given, there is an expectation of continued improvement in margins, as seen in previous quarters. (Respondent: Unidentified_2)
Q: Is Solutions 30 SE facing more competition in the solar sector, and how do they stand out?
A: While there is increased competition, Solutions 30 SE has a competitive advantage due to its early investment in a robust solar power company in 2018, providing them with accrued experience and specific know-how that clients value. (Respondent: Unidentified_1)
Q: Will Solutions 30 SE continue to pay back part of its debt in 2025?
A: Yes, the company plans to gradually pay back its debt, especially given the current high-interest rates, continuing the deleveraging process. (Respondent: Unidentified_1)
Q: How does AI impact Solutions 30 SE's activities?
A: AI is seen as a positive influence, enhancing efficiency through applications like image recognition for quality checks and optimizing technician routes. The company plans to continue leveraging AI for operational improvements. (Respondent: Unidentified_1)
Q: Will Solutions 30 SE accelerate acquisitions in the energy sector?
A: The company plans to continue acquisitions at a similar pace to previous years, focusing on bolt-on acquisitions of small-sized companies in the energy sector. (Respondent: Unidentified_1)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
