Stabilus (STM) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue increased 7.8% year-over-year, driven by Destaco integration, while organic revenue declined 5% due to market softness.

• Adjusted EBIT margin was 11.2% in Q2 and 11.4% for H1; profit margins declined due to higher costs and one-off expenses.

• Destaco integration completed, contributing significantly to sales, EBIT, and free cash flow improvements.

• FY2025 guidance confirmed: revenue €1.3–1.45 billion, adjusted EBIT margin 11–13%, adjusted free cash flow €90–140 million.

• Strategic focus on industrial automation and cross-selling between business units is yielding strong results.

Financial highlights

• Q2 FY25 revenue was €338.0 million (+7.8% y/y); H1 revenue reached €663.9 million (+7.3% y/y).

• Adjusted EBIT margin for Q2 was 11.2%; H1 at 11.4%.

• Destaco contributed €91.7 million in revenue and €17.1 million in adjusted EBIT (18.6% margin) in H1.

• Adjusted free cash flow was €27.0 million in H1, down 32.3% y/y; Q2 adjusted FCF was €18.1 million (+389.2% y/y).

• Net leverage ratio increased to 2.97x, mainly due to Destaco funding.

Outlook and guidance

• FY2025 guidance reaffirmed: revenue €1.3–1.45 billion, adjusted EBIT margin 11–13%, adjusted free cash flow €90–140 million.

• Earnings expected to be back-end loaded due to market and macroeconomic uncertainty.

• Guidance assumes no escalation in global trade conflicts or further tariff increases.

• Long-term target: €2 billion revenue and ~15% adjusted EBIT margin by FY2030.

• Market volatility and tariff impacts remain key uncertainties.