Stabilus (STM) Q4 2024 TU earnings summary

Executive summary

• Achieved record Group revenue of €1,305.9 million and strong free cash flow in FY2024, despite challenging macroeconomic conditions.

• Destaco acquisition and integration were major growth drivers, contributing €95.4 million in revenue and over 20% EBIT margin in its first half-year.

• Diversification between automotive and industrial segments is progressing, with a near 50-50 split and improved business stability.

• Innovation and automation, including electrification and smart products, remain strategic priorities and growth drivers.

• Profit declined to €72.0 million, mainly due to Destaco acquisition-related costs and higher taxes.

Financial highlights

• FY2024 revenue rose 7.5% year-over-year to €1,305.9 million; Q4 revenue up 9.4%, largely due to Destaco.

• Adjusted EBIT margin for the year was 12.0%, in line with guidance but down from 13.0% last year due to FX and acquisition effects.

• Adjusted free cash flow increased 23.8% to €132.8 million, driven by Destaco and working capital optimization.

• Net debt reduced by over €50 million in six months to €668.4 million; net leverage ratio stable at 2.8.

• Net profit declined 30.3% year-over-year to €72.0 million; EPS €2.84.

Outlook and guidance

• FY2024 guidance was met: revenue €1,306 million, adjusted EBIT margin 12.0%.

• Net leverage ratio targeted below 2.0 in the next 2–3 years and around 1 mid-term.

• FY2025 forecast and final figures to be published December 9, 2024.

• Long-term STAR 2030 strategy continues, focusing on profitable, sustainable growth and innovation.

• Material costs expected to decrease by 1.5%-2% in the coming year, while labor inflation is anticipated at 3.5%-4%, managed through automation.