Interim report
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PRESS RELEASE 1 Press release Vienna/Ternitz, 20 March 2025 Financial year 2024: SBO delivered solid results and high cash flow despite market headwinds • Sales at a high level of MEUR 560.4, supported by expansion in strategic markets • EBITDA of MEUR 101.9 (margin: 18.2%), EBIT of MEUR 70.1 (margin: 12.5%) • Operating cash flow increased to MEUR 98.4, free cash flow doubled to MEUR 66.8 • Dividend proposal of EUR 1.75 per share Schoeller-Bleckmann Oilfield Equipment AG (SBO), listed on the ATX of the Vienna Stock Exchange, delivered a good financial performance in 2024 in a challenging market environment. Sales remained at a high level of MEUR 560.4 (2023: MEUR 585.9), supported by increased growth in the strategic markets Middle East and Latin America. The slight decline in sales by 4.3% was mainly due to the softening demand in the Advanced Manufacturing & Services division (AMS) in the second half of the year, which was partial ly offset by higher sales in the Oilfield Equipment division (OE). SBO's bookings reached MEUR 483.7 (2023: MEUR 543.7), with an order backlog of MEUR 141.8 at the end of the year (2023: MEUR 225.4). Despite the market headwinds, SBO achieved solid results. EBITDA and EBIT remained at a double-digit margin level but were impacted by the market environment and additional expenses in the first half of the year: Earnings before interest, taxes, depreciati on and amortization (EBITDA) reached MEUR 101.9 (2023: MEUR 131.3) with an EBITDA margin of 18.2% (2023: 22.4%). Profit from operations (EBIT) amounted to MEUR 70.1 (2023: MEUR 102.3), leading to an EBIT margin of 12.5% (2023: 17.5%). Profit before tax amounted to MEUR 63.6 (2023: MEUR 94.2), while profit after tax came to MEUR 45.3 (2023: MEUR 71.6), with an increased effective tax rate of 28.8% (2023: 24.0%). Earnings per share (EPS) for 2024 were EUR 2.88 (2023: EUR 4.55). “In 2024 we experienced mixed and generally difficult market conditions. Especially in the US, the market development was weaker than expected. In the AMS division, customer demand slowed down as of mid- year. We responded quickly to these dynamics and took targeted countermeasures. In addition, we successfully accelerated our expansion in strategically important regions such as the Middle East and Latin America. As a result, we achieved a double -digit EBIT margin and doubled our free cash flow in 2024” , says Klaus Mader, CEO of SBO. “At the same time, we maintained a
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PRESS RELEASE 2 consistent focus on the future. The result is our recalibrated strategy that we will present today.” Mixed developments in the business divisions, OE rebound in the second half of the year After two years of very high growth (2023: 32.2%, 2022: 75.8%), the Advanced Manufacturing & Services division generated sales of MEUR 285.3 (2023: MEUR 328.7). The reduction of 13.2% is due to the industry’s cautious investment behavior and correspondingly lower customer demand. Profit from operations (EBIT) amounted to MEUR 56.7 (2023: MEUR 80.3), the EBIT margin remained high at 19.9% (2023: 24.4%). The Oilfield Equipment (OE) division faced a difficult US market. Organizational and operational measures in the first half of the year and accelerated growth in the Middle East and Latin America, both markets in SBO's strategic expansion focus, led to a rebound in the second half of the year. Despite the weak US market environment, the OE division reached a sales increase of 7.0% to MEUR 275.2 (2023: MEUR 257.2) at the end of the year. After a weak first half -year result (H1 2024: EBIT of MEUR 2.2), OE's performance improved significantly in the second half of the year, reaching an EBIT of MEUR 16.7 for the full year 2024 (2023: MEUR 31.5). The EBIT margin came to 6.1% (2023: 12.2%). Excellent balance sheet structure, free cash flow doubled The SBO Group's equity increased to MEUR 492.7 as of 31 December 2024 (2023: MEUR 448.0). This corresponds to an excellent equity ratio of 50.0% (2023: 53.6%). Cash and cash equivalents almost doubled to MEUR 314.7 (2023: MEUR 162.4), supported by high ope rational cash generation and additional funds raised. Net debt decreased significantly to MEUR 56.0 (2023: MEUR 92.3), taking the gearing ratio to 11.4% (2023: 20.6%). Cash flow from operating activities (operating cash flow) increased to MEUR 98.4 (2023: MEUR 86.5). The free cash flow doubled from MEUR 33.1 in 2023 to MEUR 66.8. In 2023, the free cash flow included an acquisition -related outflow of MEUR 18.6. Capital expenditure on property, plant and equipment and intangible assets (CAPEX) amounted to MEUR 34.6 (2023: MEUR 37.5). These investments have been used to expand the AMS business in Vietnam and to increase the capacity for 3D metal printing. Additional investments were made in the upgrade and renewal of the rental fleet of drilling tools. Based on the solid results and strong cash generation, the Executive Board will propose a dividend of EUR 1.75 per share for the 2024 financial year (2023: EUR 2.00) at the Annual General Meeting. This represents a payout ratio of 61%. Outlook: Manage evolving market conditions and drive strategic success SBO's market environment remains complex and volatile in 2025 given policy changes, geopolitical uncertainties and evolving tensions in global trade. Regionally diverging trends and market dynamics will shape the priorities in the two business units in the short term. SBO will continue to actively manage the cautious investment behavior and
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PRESS RELEASE 3 the resulting lower customer demand in the AMS division and adjust capacities accordingly. In the OE division, SBO is well positioned to outperform an ongoing challenging US market, as a result of organizational and operational measures taken in early 2024, including technological advances and product innovation. Internationally, SBO will continue to accelerate sales growth and increase its market share. SBO remains confident about the long -term outlook for the energy sector. Growing global energy demand, the emphasis on energy security and the ongoing energy transition are contributing factors. At today's presentation of its annual results, SBO is also presenting its recalibrated strategy, which is based on the key elements of diversification, market expansion, technology leadership and operational excellence. This will enable SBO to achieve long - term growth and portfolio expansion as well as value creation through sustainable operations. “The current geopolitical and economic environment is volatile, but we remain focused on our course: we are purposefully implementing our new strategy, driving innovation and targeting growth opportunities. Building on our strong balance sheet and high cash position we are very well positioned to execute our strategy with focus and precision” , concludes CEO Klaus Mader. Note for the media SBO's 2024 results, new strategy and new brand identity will be presented to media representatives at today's annual results press conference at 10:00 at k47, 1010 Vienna (registration at media.relations@sbo.at ). A press release on the recalibrated strategy will follow at 10:30 a.m.
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PRESS RELEASE 4 Key performance indicators 2024 2023 Sales MEUR 560.4 585.9 EBITDA MEUR 101.9 131.3 EBITDA margin % 18.2 22.4 EBIT MEUR 70.1 102.3 EBIT margin % 12.5 17.5 Profit before tax MEUR 63.6 94.2 Profit after tax MEUR 45.3 71.6 Earnings per share EUR 2.88 4.55 Cash flow from operating activities MEUR 98.4 86.5 Free cash flow MEUR 66.8 33.1 Liquid funds as of 31 December MEUR 314.7 162.4 Net debt as of 31 December MEUR 56.0 92.3 Equity ratio % 50.0 53.6 Employees as of 31 December 1,596 1,601 About SBO SBO is world market leader in the manufacture of high-alloy, non-magnetic steels, high-precision components and high-tech equipment for the energy sector and other industries. The global precision technology group, headquartered in Ternitz, Austria, operates worldwide at more than 20 sites with around 1,600 employees. The group provides leading technologies based on a highly innovative product portfolio and strong patents. SBO is listed in the ATX leading index of the Vienna Stock Exchange (ISIN AT0000946652). More information: www.sbo.at
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PRESS RELEASE 5 Contact: Monika Bell, Head of Investor Relations phone: +43 2630 315-253 email: investor.relations@sbo.at media.relations@sbo.at