French engineering giant Altrad has recorded lower revenue growth in 2024 after completing multiple acquisitions in recent years of “transformative growth”.
The Montpellier-headquartered company recorded close to €5.5 billion (£4.5bn) in revenues, an increase of just over 3% compared to its results last financial year.
It represents a steadying of revenue growth for Altrad after it recorded a 38% increase between 2022 and 2023 following several takeovers.
Altrad continued the trend this year with the purchase of Aberdeen-headquartered Stork in May and Norway’s Beerenberg in November.
Releasing its full-year results, Altrad reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of €684 million (£565m).
Meanwhile, free cash flow reached €323m (£267m), up from €283m in 2023.
The company’s order book dropped slightly, falling from €5.7bn (£4.7bn) last year to €5.47bn (£4.52bn). Net debt reduced from €824m (£681m) to €794m (£656m).
Altrad diversification
Commenting on the results, Altrad co-chief executive Ran Oren said 2024 has been a “very successful year” for the company.
“We are pleased to report strong overall financial performance, driven by robust profitability across our industrial services and equipment segments despite macroeconomic challenges in Europe impacting certain areas of our equipment business,” Oren said.
© Supplied by AltradWith the company now boasting a 60,000-strong global workforce, Oren said Altrad delivered a performance in line with its forecasts.
“Following strong acquisitive growth in recent years, Altrad has been focused on delivering robust financial performance from a resilient diversified business of scale and a global reach with an enhanced value proposition for our clients,” he said.
“Thanks to the commitment and support of these newly integrated businesses, Altrad has increased revenue year-on-year which, in turn, fuels further investment by the group, bolstering its pursuit of sustainable long-term growth.”
Oren said the company’s diversification and consolidation strategy will provide Altrad a “stable platform for organic growth”.
In its forecast for 2025, Altrad said it expects turnover to remain stable for the remainder of the current fiscal year.
Altrad targets nuclear growth
Altrad said a “strong balance sheet and available banking facilities” mean the group has scope to “consider strategically complementary and value accretive acquisitions”.
Beyond the oil and gas sector, Altrad said it is focusing on expanding its role in the nuclear industry in Europe and the Middle East.
Following its takeover of French firm Endel in 2022, Altrad said it is “ideally positioned” for the expected growth in the nuclear sector in the coming decades.
Elsewhere, the company said it is “actively participating” in the energy transition through investments in hydrogen and nuclear fusion.
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