EQS-News: Financial year 2024: SBO delivered solid results and high cash flow despite market headwinds

EQS-News: Schoeller-Bleckmann Oilfield Equipment AG / Key word(s): Annual
   Results
   Financial year 2024: SBO delivered solid results and high cash flow
   despite market headwinds

   20.03.2025 / 07:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   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

   Ternitz/Vienna, 20 March 2025. 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 partially 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, depreciation 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
   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 operational 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 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 [1][email protected]). A
   press release on the recalibrated strategy will follow at 10:30 a.m.

   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

    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: [2]www.sbo.at

   Contact:
   Monika Bell, Head of Investor Relations
   Schoeller-Bleckmann Oilfield Equipment AG
   Tel: +43 2630 315-253
   E-Mail: [3][email protected] [4][email protected]

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   20.03.2025 CET/CEST This Corporate News was distributed by EQS Group.
   www.eqs.com

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   Language:    English
   Company:     Schoeller-Bleckmann Oilfield Equipment AG
                Hauptstrasse 2
                2630 Ternitz
                Austria
   Phone:       +43 (0)2630/315110
   E-mail:      [email protected]
   Internet:    http://www.sbo.at
   ISIN:        AT0000946652
   Indices:     ATX
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 2103304


    
   End of News EQS News Service


   2103304  20.03.2025 CET/CEST

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