Jungheinrich (JUN3) Q2 2024 earnings summary

Executive summary

• Business remained resilient in H1 2024 despite challenging market conditions, with stable incoming orders and revenue at prior-year levels; revenue was €2,622 million, down 1.4% year-over-year.

• EBIT for H1 2024 was €215 million, a 9% decrease year-over-year, with EBIT ROS at 8.2%, supported by prior cost measures but impacted by higher personnel costs.

• Free cash flow improved significantly to €172 million, compared to -€182 million in H1 2023, reflecting better working capital management and absence of prior-year acquisition outflows.

• Net profit for H1 2024 was €143 million, down 12.3% year-over-year; earnings per preferred share were €1.41.

• 2024 full-year forecast confirmed, with no change to guidance and expectations of stable or slightly growing revenue and earnings.

Financial highlights

• Incoming orders for H1 2024 were €2,665 million, nearly flat year-over-year.

• Orders on hand at 30 June 2024 were €1,520 million, up 5.5% from year-end 2023.

• EBIT for H1 2024 was €215 million (H1 2023: €236 million), with EBIT ROS at 8.2% (H1 2023: 8.9%).

• Free cash flow reached €172 million, a significant improvement from -€55 million in H1 2023.

• ROCE declined to 16.4% from 18.2% in H1 2023.

Outlook and guidance

• 2024 forecast maintained: incoming orders €5.2–5.8 billion, revenue €5.3–5.9 billion, EBIT €420–470 million, EBIT ROS 7.6–8.4%.

• EBT forecast at €380–430 million; EBT ROS between 6.9% and 7.7%.

• ROCE expected at 14.5–17.5%; free cash flow over €200 million.

• Assumptions include stable geopolitical, interest, and inflation environments, and stable supply chains.