StarragTornos (STGN) H2 2024 earnings summary

Executive summary

• Navigated a challenging macroeconomic environment in 2024, including inflation, geopolitical tensions, and shifting demand across industries.

• Merger of Starrag and Tornos in December 2023 created a global metalworking solutions provider with 11 production sites, developing and selling precision machine tools under two brands.

• Aerospace became the largest market segment, driven by defense and civil aviation demand; energy market sales more than doubled.

• Luxury goods and industrial segments saw significant declines due to global investment hesitancy and slower market activity.

• Maintained market share and launched innovative products despite market headwinds, leveraging the new group structure.

Financial highlights

• Order intake for 2024 was CHF 476.3 million, down 9.9% year-over-year (pro forma comparison).

• Net sales reached CHF 494.1 million, a 13% decline year-over-year (pro forma).

• EBIT fell to CHF 15.4 million (3.1% margin), down 56.8% from 2023, mainly due to lower volumes.

• Net profit was CHF 11.9 million, down 52.9% year-over-year.

• Proposed dividend of CHF 1 per share, payout ratio at 46.1%.

Outlook and guidance

• No clear signs of long-term economic recovery; cautious short-term approach for 2025 amid persistent uncertainty and potential new trade barriers.

• First half of 2025 expected to be similar to first half of 2024; defense orders anticipated but timing uncertain.

• Recovery in luxury goods sector remains a key variable for second half performance.

• Long-term targets: 5% average annual sales growth and EBIT margin above 8% over 3–5 years.

• Continued focus on synergy initiatives and flexible adaptation to market changes.