Elektrotim estimates that PLN 1 bln revenue level is possible in medium term

"With such a market, it would be a strategic mistake not to be ambitious and not to prepare Elektrotim's resource and financing side for growth opportunities. We are certainly thinking and preparing even to double first the backlog and then the revenues, but this will not happen yet in 2025," CEO Wieznowski said.

"The possibilities of replenishing the order backlog will quickly run out - we still have the spring catch-up period, and then we are acquiring topics mostly for the following years. So, we can think about PLN 1 billion [revenues - PAP ed.], but in the medium term, a few years (...). There is no need to hide - we are certainly considering such figures," he added.

As the CEO pointed out, the energy transformation, the development of the traction and defence segment, or contracts based on EU funds under the national recovery plan KPO could help achieve such levels.

"The energy transformation is 15-20 years of hard work in the Polish energy market (...). This offers very good prospects and means that we need to worry less in the medium term about demand and more about the resource side and obtaining the best possible contracts," Wieznowski added.

After three quarters of 2024, the group's revenue was PLN 336 million (EUR 77.4 million), down from PLN 409 million (EUR 94.2 million) in the prior year period.

The Elektrotim group's order backlog at the end of September 2024 was approximately PLN 589.6 million (EUR 135.8 million), up from PLN 473.8 million (EUR 109.1 million) a year earlier.

"The level of credit and guarantee limits we have would allow us to service a backlog of around PLN 750 million (...). We are prepared for an element of growth and to follow the development of the market," the CEO

assessed.

"We are working with financial partners to expand the available sources of financing," Elektrotim's management board member Marek Piotrowski added.

In the three quarters of 2024, the group recorded a 16.8 percent gross sales margin (up by 1.5 percentage points year on year).

As reported by the management board, the improvement is the result of, among other things, cost optimisation.

"The difficult year for the construction industry meant that there were many people willing to carry out some of the orders, and this means that there is no price pressure, which we faced, for example, in 2022 or at the beginning of 2023," Piotrowski pointed out.

"This made it possible to carry out contracts at stable costs, often below budgeted costs (...). One contract involved a change of supplier - from a Polish one to a Spanish one, and this improved its profitability," he added.

Elektrotim expects to maintain the scale of activity in the fourth quarter of 2024, including the completion of the Bug river contract.

"We anticipate strong activity in the fourth quarter (...). There will be no seasonal decline," CEO Wieznowski said.

"This is due to, among other things, climate change, the fact that it is possible to work longer in the current conditions, as well as the contractual arrangement," he added.

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