Stabilus (STM) Investor Update summary

Updated financial guidance

• FY2024 revenue guidance revised to €1.3–1.35 billion, down from €1.4–1.5 billion.

• Adjusted EBIT margin guidance lowered to 11.7–12.3% from previous 14–15%.

• Reduction driven by €75 million lower call-offs from automotive and commercial vehicle OEMs, mainly due to high inventories and production cuts.

• Margin decline includes a €23 million impact from a 30% drop-through rate and lower fixed cost absorption.

• No structural issues identified; business wins and market share remain stable.

Market and operational context

• OEMs are reducing production due to high inventory levels, leading to extended plant shutdowns, especially in North America and China.

• The current weakness is expected to persist through September, with no recovery anticipated before the fiscal year-end.

• The reduction in call-offs is a temporary market weakness, not a loss of contracts or market share.

• Industrial business integration is progressing well, with H2 sales expected at €100 million and a 19% EBIT margin.

• Strategic focus remains on strengthening the industrial segment to balance cyclical automotive exposure.

Cost management and margin actions

• Plants in affected regions will take early vacation to mitigate fixed costs, especially in North America and Mexico.

• Automation and efficiency projects are ongoing to support long-term margin improvement.

• Cost optimization measures include hiring freezes and overhead reductions, already in place.

• Margin pressure is mainly due to high fixed cost absorption in high-margin automotive products.

• All optimization programs will continue through year-end to support profitability.