Daldrup & Söhne AG achieves EBIT margin of 12.7% in 2024

CORPORATE NEWS

Daldrup & Söhne AG achieves EBIT margin of 12.7% in 2024

• Free cash flow jumps to €9.7 million (previous year: €0.5 million)
• EBIT increases by a factor of 2.7 to €6.9 million
• Total output 12.7% higher than in the previous year at €54.6 million
• Order backlog at around €31 million, relevant market volume at €405 million as of the end of March 2025
• Forecast for 2025: total operating performance of around €52 million, EBIT margin between 9% and 12%

Oberhaching / Ascheberg, 2 June 2025 – Drilling technology and geothermal energy specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved consolidated operating earnings before interest and taxes (EBIT) of €6.9 million in the 2024 financial year (1 January to 31 December) in accordance with German commercial accounting standards (HGB). This represents an increase of 268 per cent compared with the previous year. The EBIT margin, based on total output, was 12.7 per cent (previous year: 5.3 per cent). At €54.6 million, the Group's total output was significantly higher than the previous year's figure of €48.4 million. Daldrup thus reported results for both total output and EBIT margin that were well above the forecast raised on 27 August 2024 (total output of €50 million, EBIT margin between 7% and 9%). The drilling contracts completed in the reporting year led to consolidated revenue of €54.1 million – a strong increase of around 10 per cent compared with 2023 (€49.1 million). The consolidated net profit for the year amounted to 2.5 million euros (previous year: 890 thousand euros). Earnings per share (EPS) thus amounted to 0.42 euros (previous year: 0.15 euros). The Group's equity ratio is comfortable at 68.8 per cent (previous year: 50.6 per cent). Free cash flow rose substantially from 0.5 million euros in the previous year to 9.7 million euros. As of the balance sheet date of 31 December 2024, Daldrup also had cash and cash equivalents of 6.4 million euros (previous year: 3.6 million euros).

Investment in drilling equipment fleet

Daldrup & Söhne AG further strengthened its core business in the reporting year by investing in its equipment fleet and technical upgrades. Around €4.1 million (previous year: €3.1 million) was invested in replacing equipment that had previously been leased, in the general overhaul of existing drilling rigs and in the repurchase of a drilling rig for medium-depth geothermal energy and the exploration business that had previously been leased. Overall, continuous investments will further improve efficiency in drilling projects and in the company's organisation, thereby underpinning its earnings power.

Business model benefits from structural growth trends

The business model of Daldrup & Söhne AG is largely independent of economic cycles and characterised by a long-term order environment for public services. The relevant market is on a promising growth trajectory with positive momentum. This includes the transition of heat supply as part of the energy transition, which is fuelling demand for the development of geothermal energy for feed-in to local and district heating networks. Another factor is the investment programme announced by the new German government with special funds for upgrading infrastructure, for example in road, tunnel and bridge construction.

The market environment is supported by a significantly improved regulatory framework, which will create more attractive development, investment and operating conditions for drilling companies as well as power plant and heating network operators. The new federal government has announced further legislative initiatives in its coalition agreement: the introduction of an instrument to hedge exploration risks, an increase in federal funding for efficient heating networks (BEW), and the implementation of the Act to Accelerate Approval Procedures for Geothermal Energy Plants, Heat Pumps and Heat Storage Facilities (GeoWG), which includes ‘overriding public interest’.

Such a package of measures would significantly accelerate the expansion of geothermal plants and heating networks. Together with the special funds approved for infrastructure and the expansion of renewables, this would provide the urgently needed planning, financing and investment security for Daldrup & Söhne AG's customers in the coming years.

Board optimistic for the 2025 financial year

This is already reflected in the market volume currently under negotiation. At the end of March 2025, it reached a new record level of 405 million euros. At the end of March 2025, the order book also remained at a consistently high level of €31 million, ensuring full capacity utilisation for crews and drilling equipment until 2026. These figures impressively reflect the strong interest in our services. Daldrup is well positioned in the market and is a sought-after source of expertise and a valued drilling service provider. Against this backdrop, the Management Board of Daldrup & Söhne AG is confident that, assuming business develops as planned, the Group will generate total operating performance of around €52 million in 2025 and achieve an EBIT margin of between 9 per cent and 12 per cent of total operating performance.

Note I

The 2024 Annual Report is available for download at https://daldrup.eu/de/ir/ under Company Reports 2025.

Note II

Upcoming IR roadshows / conferences / events

- 28 August 2025: Annual General Meeting, Dortmund

- 2 September 2025: Autumn Conference, Frankfurt

- 30 September 2025: Publication of half-year consolidated financial statements
                                   as of 30 June 2025

- 12 November 2025: MKK, Munich

- 24–26 November 2025: Equity Forum, Frankfurt

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.

Disclaimer

This publication constitutes neither an offer to sell nor a solicitation of an offer to buy or subscribe for securities. This publication and the information contained therein are not intended for direct or indirect distribution in or within the United States of America ("USA"), Canada, Australia or Japan.

Presse- & Investor Relations Contact

Daldrup & Söhne AG

Falk von Kriegsheim

     Fon +49 (0)2593-9593-29

     Fax +49 (0)2593-9593-60

Bajuwarenring 17a   ir@daldrup.eu

82041 Oberhaching   www.daldrup.eu