Vaisala Corporation Half Year Financial Report January–June 2024

    Vaisala Corporation Half Year Financial Report January–June 2024

Vaisala Corporation        Half Year Financial Report                July 25, 2024, at 9:00 a.m. (EEST)

Vaisala Corporation Half Year Financial Report January–June 2024

Strong growth in Q2 orders received and net sales, operating result doubled

This release is a summary of Vaisala’s Half Year Financial Report January–June 2024. The complete report is attached to this release as a pdf file. It is also available on the company website at www.vaisala.com/investors.

Second quarter 2024 highlights

• Orders received EUR 147.2 (129.3) million, increase 14%
• Order book at the end of the period EUR 196.9 (167.4) million, increase 18%
• Net sales EUR 148.4 (130.8) million, increase 13%
• Operating result (EBIT) EUR 23.7 (11.9) million, 15.9 (9.1) % of net sales
• Earnings per share EUR 0.49 (0.22)
• Cash flow from operating activities EUR 7.7 (8.8) million

January–June 2024 highlights

• Orders received EUR 270.5 (261.3) million, increase 4%
• Net sales EUR 260.5 (262.6) million, decrease 1%
• Operating result (EBIT) EUR 30.8 (25.2) million, 11.8 (9.6) % of net sales
• Earnings per share EUR 0.64 (0.49)
• Cash flow from operating activities EUR 24.8 (35.7) million

Business outlook for 2024 – estimate ranges specified

Vaisala estimates that its full-year 2024 net sales will be in the range of EUR 540–570 million and its operating result (EBIT) will be in the range of EUR 68–78 million.

Earlier Vaisala estimated that its full-year 2024 net sales would be in the range of EUR 530–570 million and its operating result (EBIT) would be in the range of EUR 63–78 million.

Market outlook for 2024

Markets for high-end industrial instruments and life science slowed down significantly during Q2/2023 and remained on a lower level for the rest of the year. Markets remained flat in H1/2024 and are expected to start improving during H2/2024. Markets for power and energy, and liquid measurements markets are expected to grow.

Markets for the more mature markets, meteorology, aviation, and roads, are expected to be stable. Market for renewable energy is expected to grow.

Key figures

MEUR	4-6/2024	4-6/2023	Change	1-6/2024	1-6/2023	Change	1-12/2023
Orders received	147.2	129.3	14%	270.5	261.3	4%	528.1
Order book	196.9	167.4	18%	196.9	167.4	18%	172.5
Net sales	148.4	130.8	13%	260.5	262.6	-1%	540.4
Gross profit	84.6	72.1	17%	145.3	146.0	0%	301.7
Gross margin, %	57.0	55.1		55.8	55.6		55.8
Operating expenses	61.2	60.4	1%	114.8	121.1	-5%	235.9
Operating result	23.7	11.9		30.8	25.2		66.6
Operating result, %	15.9	9.1		11.8	9.6		12.3
Result before taxes	23.2	10.5		29.8	22.9		63.1
Result for the period	17.9	8.0		23.1	17.6		48.9
Earnings per share	0.49	0.22	124%	0.64	0.49	31%	1.35
Return on equity, %				17.4	14.5		18.9
Research and development costs	17.9	18.1	-1%	34.3	36.0	-5%	67.7
Capital expenditure	4.9	3.6	34%	6.9	6.7	2%	13.9
Depreciation, amortization, and impairment	5.8	6.1	-4%	11.5	12.0	-4%	24.3
Cash flow from operating activities	7.7	8.8	-13%	24.8	35.7	-31%	83.8
Cash and cash equivalents				65.2	51.2	27%	90.3
Interest-bearing liabilities				45.9	62.9	-27%	62.1
Gearing, %				-7.3	4.9		-10.5

President and CEO Kai Öistämö

“Vaisala had a strong second quarter and both our business areas performed well after the slow start of the year. We continued executing our strategy with sustained profitability improvement in the established weather business and continued growth in subscription sales as well as in services sales. Compared to the previous year, our Q2 orders received grew by 14% and net sales by 13%. The quarter ended with a new record-high order book of EUR 197 million. Moreover, our Q2 operating result more than doubled compared to the previous year, reflecting the strong growth in net sales, improved gross margin, and successful cost consciousness.

After challenging 12 months, Industrial Measurements business area was back on growth. Q2 orders received grew by 8% and net sales by 7%. In the life science market segment, orders received were at previous year’s level, while orders in all other market segments grew. Net sales continued to grow very strongly in the power and energy market segment. We saw very strong growth also in the business area’s service sales, resulting from systematic sales efforts and growing the installed base of our equipment. The gross margin and operating result margin returned to a good level, operating result margin again exceeding 20%.

For Weather and Environment business area, Q2 was very strong in all aspects. Both orders received and net sales grew by 18%. Orders received grew especially in the aviation and meteorology market segments, and net sales grew in all market segments. Net sales growth was mainly driven by large orders received during the past quarters and high project sales during the quarter. The subscription sales business continued to grow at a very strong growth rate of 16%. The operating result more than doubled compared to previous year and was 12.2% of net sales.

In June, our new Chief Digital and Information Officer Girish Agarwal joined the company. Girish brings strong expertise in advanced AI, IT, and digitalization, which are key areas for our future success. He succeeds Olli Nastamo, who retires after a long and successful career. I want to thank Olli for his contributions and warmly welcome Girish to our team.

Looking forward, our view on the full year 2024 remains unchanged, but after H1 solid performance, we have narrowed our estimate ranges for the full-year net sales and operating result. We anticipate that the business environment remains uncertain, and we need to continue to pace our investments accordingly. However, we continue to anticipate that our performance in the second half of the year will be stronger than in the first half. We now estimate that our full-year 2024 net sales will be in the range of EUR 540–570 million and operating result (EBIT) in the range of EUR 68–78 million.”

Audiocast and teleconference
An audiocast and a conference call for analysts, investors and media will be held in English on Thursday 25, 2024, starting at 1:30 p.m. (Finnish time).

You can participate in the live audiocast via following link: https://vaisala.videosync.fi/q2-2024/register

Questions may be presented by participating in the teleconference. You can access the teleconference by registering on the link below. After the registration, you will receive an email with the dial-in numbers and a conference ID.
https://palvelu.flik.fi/teleconference/?id=50048552

A recording will be available at Vaisala.com/investors later the same day.

Further information
Paula Liimatta
[phone], [e-mail]
Vaisala Corporation

Distribution
Nasdaq Helsinki
Key media
vaisala.com

Vaisala is a global leader in measurement instruments and intelligence for climate action. We equip our customers with devices and data to improve resource efficiency, drive energy transition, and care for the safety and well-being of people and societies worldwide. With almost 90 years of innovation and expertise, we employ a team of over 2,300 experts committed to taking every measure for the planet. Vaisala series A shares are listed on the Nasdaq Helsinki stock exchange. vaisala.com

Attachment

• Vaisala Half Year Financial Report 2024