Stabilus (STM) Status Update summary

Transformation program update

• Launching the second phase of a transformation program to maintain efficiency and profitability amid ongoing market softness, especially in automotive and industrial sectors.

• Organizational structure is being streamlined, reducing hierarchical layers, consolidating office and production facilities in Germany, the USA, Singapore, and Thailand, and integrating recent acquisitions.

• Workforce reduction of 450 employees (6% of global headcount), mainly in EMEA and Americas, with a one-off restructuring expense of €18 million, primarily for severance, real estate, and restructuring.

• Integration of Stakeholder acquisition enables synergies, such as closing the Singapore office, moving operations to Thailand, and combining HR, IT, and other overhead functions.

• Strong commitment to achieving STAR 2030 targets, especially an adjusted EBIT margin of 15%.

Financial guidance and outlook

• Reaffirming full-year guidance: €1.3 billion in sales, 11% EBIT margin, and €105 million free cash flow.

• The restructuring program is expected to have a payback period of less than one year, with €19 million in cost savings in 2027 and €32 million recurring annual savings from 2028.

• Net profit for the year will be impacted by the €18 million accrual, reducing consensus from €47 million to €25–27 million.

• FY2024 actuals were €1,305.9 million in revenue, 12.0% adjusted EBIT margin, and €132.8 million adjusted free cash flow.

• Long-term target remains a 15% EBIT margin by 2030, with the current 11% margin already outperforming peers.

Market environment and pricing

• Market softness and global tariff pressures are affecting demand, especially in automotive, but business pipelines remain strong across all regions.

• Price deterioration in automotive Powerise segment was 5–6% globally in 2023, mainly due to China, with expectations of 3.5–4% price declines next year.

• Assumptions for future cost savings are based on S&P forecasts for light vehicle production (<2% growth) and global GDP growth (~3%).