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Investing.com -- Gaztransport & Technigaz ( GTT (EPA:GTT)) saw its stock surge over 14% on Friday following its full-year 2024 financial results and an optimistic outlook for 2025.
The company reported a sharp increase in revenue, profitability, and dividend payouts, driving strong investor sentiment.
GTT’s revenue for 2024 reached €641 million, marking a 50% year-over-year increase and landing at the upper end of the company’s guidance.
The French engineering company’s core business in new ship builds contributed significantly, alongside growth in its digital and services segments.
Earnings before interest, taxes, depreciation, and amortization jumped 65% to €388 million, exceeding the company-collected consensus estimates. Net income followed suit, rising 73% to €348 million.
The strong financial results translated into a proposed dividend of €7.50 per share for 2024, representing a 72% increase from the previous year.
Analysts at Bernstein view the results as a key catalyst for upward revisions in market expectations for 2025 and beyond. The company has guided for revenues between €750 million and €800 million in 2025, with EBITDA expected to range from €490 million to €540 million.
The company also maintains an order backlog of nearly €2 billion, reinforcing its revenue visibility for the coming years.
Bernstein analysts have reiterated their "outperform" rating on GTT, with a price target of €166, reflecting a potential upside of 24% from its recent trading levels.
While they acknowledge the company’s strong fundamentals, they emphasize the need for GTT to further diversify its revenue streams beyond its core liquefied natural gas (LNG) technology business.