Etteplan releases a profit warning and lowers its guidance for 2024

Etteplan Oyj, Stock Exchange Release/Insider information, August 28, 2024 at 10.15 a.m. EEST

Etteplan releases a profit warning and lowers its guidance for 2024

The revenue is expected to be EUR 360-375 million and the operating profit (EBIT) about EUR 24-27 million

In its half year financial report published on August 8, 2024, Etteplan estimated its revenue for 2024 to be EUR 375-390 (2023: 360.0) million and the operating profit (EBIT) to be EUR 28-30 (2023: 25.5) million.

Etteplan is lowering its previous estimate of 2024 revenue and operating profit (EBIT) due to the weaker-than-expected market demand and business development. According to the new estimate, the revenue is estimated to be EUR 360-375 million and operating profit (EBIT) to be EUR 24-27 million.

The negative development of outlook is affected by the continuation of the weak demand situation longer than expected. Customers' decision-making on new investments is still cautious, and as customer order backlogs decrease, the demand for engineering solutions related to project deliveries decreases. The demand situation is particularly challenging in the engineering solutions of the chemical industry in Germany.

“The market's uncertainty is reflecting in our business and customers' decision-making is still slow, and projects do not start according to our expectations. The reduction in the order backlogs of the manufacturing industry and the general slow recovery of the economy have weakened market demand. We still believe that the decrease in interest rates will have a positive effect on demand, but we have to wait for a turnaround," says President and CEO Juha Näkki, Etteplan Oyj.

“Due to the continuation of the weak market situation, our revenue and profitability will fall short of the level we previously estimated, and we have to lower our guidance. We have implemented new adaptation measures to improve operational efficiency in Finland and elsewhere in Europe. These measures cause costs, but this way we want to ensure a return to a profitable growth as soon as the market situation gets better," says Näkki.

Etteplan's interim report for the third quarter will be released on Thursday, October 31, 2024.
 

Espoo, August 28, 2024
 

Board of Directors

Additional information
Juha Näkki, President and CEO, tel. +358 10 3072077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302

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