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Industrial services giant Altrad has reported robust financial results for the year ending 31 August 2024, with revenue climbing to €5.452 billion, up from €5.286 billion in the previous year.
The Group credited its diversified business model and the successful integration of recent acquisitions for its strong performance.
EBITDA increased slightly to €684 million, while free cash flow saw a significant boost, rising from €283 million to €323 million. Altrad also reduced its net debt to €794 million, improving its debt-to-earnings ratio to 1.16x, well below its post-acquisition ceiling of 2.5x.
Integration Drives Growth
Altrad has focused heavily on bringing recent acquisitions into the fold, including Altrad Sparrows, Altrad Babcock, and Altrad Endel. These businesses, leaders in their respective fields, have expanded Altrad’s geographic reach and service offerings.
The integration process has allowed the Group to offer a more comprehensive range of solutions, increasing opportunities for organic growth.
Co-CEO Ran Oren praised the contributions of Altrad’s 60,000-strong workforce: “Our people’s professionalism and dedication have driven another successful year. Thanks to their efforts, we’ve exceeded expectations and positioned Altrad for sustainable long-term growth.”
Energy Sector Expansion
Strategic acquisitions have strengthened Altrad’s position in the energy sector, particularly in the North Sea oil and gas market.
The acquisition of Beerenberg AS and a pending agreement to acquire Stork’s UK business further consolidate its presence in the region.
Beyond traditional energy, Altrad is investing in nuclear energy projects in Europe and the Middle East, focusing on future growth areas such as clean hydrogen and nuclear fusion technologies.
Resilience Amid Economic Challenges
Despite economic pressures in Europe, including inflation impacting its equipment division, Altrad’s diversified business model has proven resilient. The company has also embraced advanced technologies like AI and robotics to enhance its services and improve efficiency.
The Group’s services division, which accounts for 84% of total revenue, performed strongly across its global markets, supported by increased cross-selling and integration efforts.
Meanwhile, the equipment division, which contributes 16% of revenue, adapted to challenging conditions with targeted restructuring.
Looking Ahead
With a sizeable order book valued at €5.467 billion and stable revenue forecasts, Altrad remains optimistic about its future.
The Group is focused on leveraging synergies, maintaining cost control, and driving innovation to meet the needs of its clients.
As it approaches its 40th anniversary, Altrad says it is committed to building on its legacy of innovation and excellence. The company’s full annual report is expected in early 2025 and will be available on its website.
