- Strong Revenue and EBITDA Growth - Revenue rose 32% to EUR 389 million, with EBITDA increasing 49% to EUR 132 million, yielding a 68% margin.
- Robust Order Book - Order book stands at 308 units, valued at EUR 1.7 billion, reflecting strong demand.
- Danelec Acquisition - Acquired for EUR 194 million, expanding presence in safety and performance management, financed with EUR 120 million debt and EUR 74 million cash.
- Digital Solutions Growth - Digital revenue grew 36% to EUR 9.3 million, with gross margin improving to 57%.
- Long-Term LNG Demand - Maintained long-term estimates of 450 units over 10 years, with LNG demand expected to grow 6% annually until 2040.
Revenue Growth and Order Book
The company's order book is robust, with 308 units, valued at EUR 1.7 billion. GTT's revenue growth was driven by newbuilds, and the company maintains its long-term estimates for 450 units over the next 10 years. LNG demand remains strong, with 4 financial investment decisions taken, and the market expects an average growth of 6% per year up to 2040.
Acquisition and Innovation
The acquisition of Danelec in May expanded GTT's presence in safety and performance management. GTT's innovation efforts focus on driving energy transition and developing maritime digitalization, with recent investments in CorPower Ocean, a Swedish pioneer in wave energy transition. The Danelec acquisition, priced at EUR 194 million, will be financed with EUR 120 million in debt and EUR 74 million in cash.
Financial Guidance and Valuation
For 2025, revenue guidance is maintained at EUR 750-800 million, with EBITDA expected to be EUR 490-540 million and a dividend payout ratio of at least 80%. The company's free cash flow was EUR 208 million, a 64% increase from last year. At current prices, GTT trades at a P/E ratio of 17.61, a P/S ratio of 9.54, and an EV/EBITDA of 13.72, which may suggest that the market has already priced in the company's strong growth prospects.
Elogen's Restructuring and Outlook
Elogen, a subsidiary undergoing restructuring, reported revenue of EUR 2.5 million and an EBITDA loss of EUR 9.2 million. GTT expects to reduce losses drastically in 2025 and 2026. According to the management, "Elogen's increased power for stacks in a less competitive area aims to sell electrolyzers without generating losses." The company's commercial dynamic on the LNG cargo side is muted, but 38 million tons of projects were sanctioned, and GTT expects orders to come once the context and potential changes in tax regimes are clarified.