Here is a summary of the trading statement from Wood Group (John) PLC for the half-year ended June 30, 2024 (HY24)
Financial Performance
Adjusted EBITDAApproximately $210 million, a 4% increase from the previous year, with improved profitability.
Adjusted EBITDA Margin: Around 7.4%up from 6.8% last yeardue to better pricingreduced pass-through activityand strong Operations performance.
RevenueDown by 6% to approximately $2.8 billion due to strategic shifts, lower pass-through activity, and weakness in the minerals business.
Order BookThe order book grew by 2% to around $6.1 billion compared to June 2023, with over 40% consisting of sustainable solutions.
Simplification ProgramOn track to deliver annualized savings of around $60 million from 2025, with $25 million already secured.
Outlook
Full-Year 2024The company reconfirms its outlook for high single-digit growth in adjusted EBITDA before disposals. Performance will be weighted towards the second half due to typical seasonality and the phasing of simplification benefits.
Operating Cash FlowExpected to improve, partly due to better cash management, with exceptional cash flows in line with previous guidance and weighted to the first half.
Net DebtExpected to remain at a similar level as of December 31, 2023, after proceeds from planned disposals in the second half of 2024.
2025 OutlookEBITDA growth in 2025 is expected to exceed the medium-term target, with simplification benefits and improved profitability driving significant free cash flow.
Key Takeaways
Wood Groups HY24 trading update highlights improved profitability and a focus on engineering services and consulting. The company is on track with its simplification program and expects to generate significant free cash flow in 2025. The order book remains strong, and the outlook for both 2024 and 2025 has been reconfirmed.