Wacker Neuson (WAC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 16.8% year-over-year to €493.5m, reflecting lower order intake in H2 2024 and a slow business start, but order intake has shown promising recovery since the start of the year.

• EBIT margin dropped to 2.5% from 6.2% in Q1 2024, with profitability impacted by lower volumes.

• Free cash flow improved to €19.4m, marking the fourth consecutive quarter of positive free cash flow, supported by improved operating cash flow.

• Strategy 2030 and 2025 action plans remain on track, focusing on efficiency, profitability, and gradual recovery.

• Net financial debt reduced to €298m, with a leverage ratio of 1.1 and an equity ratio of 60%.

Financial highlights

• Revenue: €493.5m (-16.8% YoY); gross profit: €108.2m (-22.0% YoY); gross margin: 21.9% (-1.5pp YoY).

• EBIT: €12.1m (-67.2% YoY); EBIT margin: 2.5% (-3.7pp YoY).

• EPS: €0.06 (-82.4% YoY); tax rate stable at 27.6%.

• Net financial debt reduced by 4.1% since year-end 2024; gearing decreased by 0.8 percentage points.

• Equity ratio stable at 60%; market capitalization at €1,026.8m.

Outlook and guidance

• 2025 revenue guidance confirmed at €2,100m–€2,300m; EBIT margin expected between 6.5% and 7.5%.

• Investments planned at around €100m; net working capital targeted at ~30% of turnover.

• Economic recovery and increased order intake expected from Q2 2025, supported by a year-to-date book-to-bill ratio above 1.

• Business climate indices in construction and agriculture show first signs of stabilization.

• Strategy 2030 continues to drive long-term growth and efficiency.