Wacker Neuson (WAC) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 declined 11.8% year-over-year to €1,204.8 million, reflecting weak market demand and high dealer inventories across all regions.

• EBIT for H1 2024 was €83.8 million, with a 7.0% margin, down from 12.9% the prior year, due to lower volumes and underutilization.

• Free cash flow turned positive at €4.5 million in H1 2024, supported by inventory reduction.

• Service business, including rental, spare parts, and after-sales, grew over 3% year-over-year, partially offsetting equipment sales declines.

• Workforce reduced by approximately 500 employees (7%) since Q4 2023, including both temporary and permanent staff.

Financial highlights

• H1 2024 revenue: €1,204.8m (-11.8% YoY); Q2 2024: €611.7m (-12.5% YoY).

• EBIT: €83.8m (-52.6% YoY); EBIT margin: 7.0% (H1 2023: 12.9%).

• Free cash flow: €4.5m (H1 2023: -€30.5m); net financial debt: €466m.

• Gross profit margin: 23.7% (H1 2023: 25.2%).

• Equity ratio: 55% at Q2 2024, slightly down due to dividend payout.

Outlook and guidance

• Full-year 2024 revenue expected between €2,300–2,400m, with EBIT margin of 6.0–7.0%.

• Market demand is expected to remain weak through year-end, with dealer inventories normalizing into 2025.

• Investments planned at ~€100m for 2024; net working capital ratio target raised to ~34%.

• Cost reduction and sales initiatives are expected to yield sustainable benefits in 2025 and beyond.