Daldrup & Söhne AG increases EBIT by 42.6 % in 2023

CORPORATE NEWS

Daldrup & Söhne AG increases EBIT by 42.6 % in 2023

• EBIT margin of 5.3 % above the forecast range for 2023
• Total output 18 % above forecast at 48.4 mio. Euro
• Order backlog at 38.5 million euros, relevant market volume at 260 mio. Euro
• 2024 forecast: total operating performance of around 47 mio. Euro, EBIT margin between 5 % and 7 %

Oberhaching / Ascheberg, June 3, 2024 - The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved consolidated earnings before interest and taxes (EBIT) of EUR 2.6 million (previous year: EUR 1.8 million) in the 2023 financial year (January 1 - December 31), calculated in accordance with the German Commercial Code (HGB). This corresponds to an increase of 42.6 % compared to the previous year. The EBIT margin in relation to total output is therefore 5.3 % (previous year: 4.9 %) of total operating performance and therefore above the forecast for the reporting year (3 % to 5 %). At EUR 48.4 million, the Group's total output is well above the forecast (around EUR 41 million) and also above the previous year's result of EUR 36.9 million. The typically volatile nature of large drilling orders led to consolidated sales of EUR 49.1 million in the reporting year - a pleasing and significantly higher level than in the previous year (EUR 38.2 million). Consolidated net income for the year amounted to EUR 890 thousand (previous year: EUR 852 thousand). Earnings per share (EPS) thus amounted to EUR 0.15 (previous year: EUR 0.14). The Group's equity ratio remains comfortable at 50.6 % (previous year: 49.7 %).

The aforementioned key figures document the pleasing development of Daldrup & Söhne AG in 2023. In addition to the improved order situation, the core business was strengthened by technical innovations and investments in the equipment fleet, including components built in-house and services provided by affiliated companies. As a result, the company has made good progress towards improving efficiency in projects and in the company organization and further increasing profitability.

Business model benefits from the decarbonization of heat supply

The business model of Daldrup & Söhne AG is largely independent of economic cycles and is characterized by a long-term order environment for the provision of public services. Overarching, the ongoing geopolitical and energy policy challenges as well as progressive climate change are strengthening the importance of geothermal energy as a solution component for an independent, decentralized and climate-friendly energy supply. The implementation of the heating transition, away from fossil fuels and towards decarbonized generation, is now a fixed criterion for investment decisions by municipalities as well as industrial and private investors. This is complemented by an emerging regulatory framework that enables more attractive development, investment and operating conditions for drilling companies as well as power plant and heating network operators. In Germany, this includes the Building Energy Act, the Municipal Heat Planning Act and federal funding for efficient heating networks. As a result, conditions are gradually beginning to improve for market participants. This contributes to the urgently needed planning and investment security for the coming years.

Management Board optimistic for the 2024 financial year

At EUR 38.5 million as at the end of March 2024, the order backlog is at a high level and will keep crews and drilling equipment busy until 2025. The market volume under negotiation is developing dynamically and reached a pleasing EUR 260 million at the end of March 2024. These figures impressively reflect the vital interest in our services. Daldrup is well positioned in the market and is a sought-after source of expertise and valued drilling service provider. Against this background, the Management Board of Daldrup & Söhne AG is confident that, if business develops as planned, it will generate total Group revenues of around EUR 47 million in 2024 and achieve a significantly higher EBIT margin of between 5 % and 7 % of total output from the operating business.

Note

The 2023 Annual Report with more detailed information and the planned development in the 2024 financial year and the key points of the business model is available for download at https://daldrup.eu/de/ir/ under Corporate Reports 2024.

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.

Press & Investor Relations Contact

Daldrup & Söhne AG

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