Daldrup & Söhne AG generates EBIT margin of 10.3% in H1 2024 and raises annual forecast

CORPORATE NEWS

Daldrup & Söhne AG generates EBIT margin of 10.3% in H1 2024 and raises annual forecast

• - Total operating performance of € 29 million, up 20% on the previous year
• - EBIT of € 3 million, up 110% on the previous year
• - New forecast for 2024: total operating performance of € 50 million, EBIT margin between 7% and 9%

Oberhaching / Ascheberg, 29 August 2024 - According to preliminary, unaudited figures, Daldrup & Söhne AG (ISIN DE0007830572), the drilling technology and geothermal specialist, generated total output of EUR 29.1 million in the first half of 2024 (as at 30 June). This corresponds to an increase of 20.8% compared to the first half of the previous year. The EBIT margin reached a value of around 10.3% (previous year: 5.9%). Group EBIT amounts to around EUR 3 million and is thus 110 per cent higher than in the previous year. The Executive Board is raising its forecast for the 2024 financial year due to the good performance of the drilling business and a dynamic market development driven by municipal heating planning: Total operating performance is expected to reach around EUR 50 million (previously: EUR 47 million). The Executive Board expects the EBIT margin to be between 7% and 9% (previously: 5% to 7%) of total operating performance.

CEO Andreas Tönies on raising the forecast: ‘Our confidence is based on continued good demand and a large number of measures with which we have streamlined our operating business in the last two years and made it significantly more efficient. We have also been able to reduce our risk exposure in the drilling business. The resulting effects will have a sustained positive impact on the earnings margin.’

High order backlog and improved regulatory framework

With a solid order backlog of EUR 34 million and a record-high order potential of EUR 297 million at the end of August, drilling teams and drilling rigs are fully utilised well into 2025. Further tailwind for the geothermal market in Germany comes in the form of federal funding for efficient heating networks (BEW), municipal heating planning and a draft bill for a Geothermal Acceleration Act (GeoWG), which has been before the federal government since the end of June. Among other things, the draft provides for geothermal energy to be recognised as being in the ‘overriding public interest’. Fixed deadlines for authorities, the digitalisation of permit applications and the possibility of an early project start are also stipulated. Work on models for state-backed exploration insurance is also taking on a more concrete form. Overall, Daldrup & Söhne AG believes that the full potential of geothermal energy to cover Germany's climate-neutral heating requirements can be tapped much more quickly.

About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a company history of more than 75 years is a specialised provider of drilling and environmental services and is positioned among the leading companies in Germany. Its activities are divided into the business areas Geothermal, Resources & Exploration, Water Extraction and Environment, Development & Services (EDS). In the Geothermal Energy business sector, drilling services are provided both for near-surface geothermal energy (especially geothermal probes for heat pumps), but above all also drilling services for deep geothermal energy of up to 6,000 m, in order to use the geothermal energy thus accessible for the generation of electricity and/or heat. In the Raw Materials and Exploration business sector, the wells drilled by Daldrup & Söhne AG are used for exploration as well as mineral raw materials and ores (e.g. copper and gold). This division also provides drilling services in the context of finding a safe final repository for nuclear waste. The Water Extraction business area includes well construction for the extraction of drinking, industrial, medicinal, mineral, boiler feed or cooling water as well as thermal brine. The business area Environment, Development & Services (EDS) comprises special environmental engineering services such as the hydraulic remediation of contaminated sites, the construction of gas extraction wells for the extraction of landfill gas, the construction of groundwater quality measuring points or the construction of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment of the Open Market of the Frankfurt Stock Exchange) and part of the Scale30 Index.

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Presse- & Investor Relations Contact

Daldrup & Söhne AG

Falk von Kriegsheim

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