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ENGlobal Corporation Reports Q2 2024 Financial Results
Financial Overview
ENGlobal Corporation (NASDAQ: ENG) reported its financial results for the quarter ended June 29, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue ($M) | 6.1 | 6.5 | 9.7 | -37% | -6% | 79.58 |
| Net Loss ($M) | -1.2 | -1.4 | -4.3 | -72% | -14% | N/A |
Interpretation : ENGlobal posted a revenue decrease of 37% year-over-year, and 6% quarter-over-quarter. Although the company reported a net loss of $1.2 million for Q2 2024, this reflects an improvement compared to both Q1 2024 and Q2 2023, indicating progress towards profitability.
Segment Performance
| Segment | Q2 2024 | Q2 2023 | YoY Change | Previous Guidance |
|---|---|---|---|---|
| Commercial Segment Revenue ($M) | N/A | N/A | N/A | N/A |
| Government Segment Revenue ($M) | N/A | N/A | N/A | N/A |
Interpretation : The detailed revenue performance across major segments was not disclosed, but the overall revenue decline was attributed to stopping non-profitable self-performing fabrication, construction, and field services projects.
Key Operational Data
| Metric | Q2 2024 |
|---|---|
| Backlog ($M) | 7.7 |
| New Bookings ($M) | 3.3 |
Interpretation : Though there's a decline in the backlog, the company is optimistic about backlog growth in H2 2024 and into 2025 driven by repositioning in the engineering business and new business opportunities.
Management Comments
William A. Coskey, P.E., Chairman and Chief Executive Officer, commented, "While we still have a lot of work to do, we continue to make progress in our quest for profitability. Our focus on corporate efficiency, higher margin business opportunities, and repositioning our engineering business should provide a path to reach run-rate profitability by year-end."
Dividends or Share Repurchase Program
No dividends or share repurchase programs were announced.
Forward Guidance
ENGlobal did not provide specific forward guidance but expressed confidence in reaching run-rate profitability by the end of the year and mentioned expansion into new business opportunities related to electric power and data centers.
Stock Price Movement
Following the earnings release, ENGlobal’s stock experienced a -10.76% change.
Summary : ENGlobal Corporation reported progress towards profitability with a significant reduction in losses despite decreased revenues. The focus on cost reduction and strategic repositioning within core business areas has yielded positive financial and operational outcomes. Management remains optimistic about future growth prospects, particularly in new technology and regional data centers, aiming for run-rate profitability by the end of 2024.
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