(Alliance News) - Tesmec Spa reported on Saturday its preliminary operating data for fiscal year 2023 and let it know that it has revised its closing estimate due to a slowdown in Trencher business.

Preliminary revenues therefore are in the EUR252-258 million range, compared to EUR245.2 million as of Dec. 31, 2022, and against expected revenues in the EUR270-280 million range.

Preliminary Ebitda is between EUR34 and EUR38 million, corresponding to an Ebitda margin in the 13.5 percent to 14.5 percent range against a forecast of between 16 percent and 17 percent.

The slowdown in the Trancher sector at the end of the year, the company's note says, was due to the "unforeseeable failure to finalize some negotiations, especially in the U.S. and Middle East markets, against negotiations that were then at an advanced stage." In contrast, the Rail Sector and the Energy Stringing and Energy Automation sectors achieved year-end results substantially in line with the latest estimates.

Preliminary Net Financial Debt as of December 31, 2023 was approximately EUR153 million against a forecast of less than EUR149 million, up from EUR128.4 million as of December 31, 2022. The delay in the materialization of some business opportunities in the Trencher segment has also "negatively impacted" "the level of net working capital resulting from ready-to-fill orders," the company further notes.

The preliminary order backlog as of Dec. 31, 2023 was approximately EUR400 million, compared to EUR406.2 million as of Dec. 31, 2022.

Tesmec's stock on Friday closed in the green by 0.9 percent at EUR0.11 per share.

By Chiara Bruschi, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.