Wacker Neuson (WAC) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was EUR 2.235 billion, a 16% year-over-year decline due to weak market demand and high dealer inventories.

• EBIT for 2024 was EUR 122.5 million, with an EBIT margin of 5.5%, reflecting weak Q3 and Q4 performance and underutilization costs.

• Service business grew 4% year-over-year, now accounting for 23% of total revenue, providing stability.

• Free cash flow doubled in Q4 to EUR 185 million, supported by significant net working capital reduction.

• Strategy 2030 and cost optimization initiatives are on track, focusing on innovation, digitalization, and sustainability.

Financial highlights

• Q4 2024 revenue fell 20% year-over-year to EUR 512.5 million; EBIT margin at 2.7% due to restructuring and higher R&D costs.

• FY 2024 gross profit margin decreased by 1.2pp to 23.2%; EBIT down 55.2% to EUR 122.5 million.

• Earnings per share dropped 62.3% year-over-year to EUR 1.03.

• Net financial debt reduced by 15.1% since end of 2023, with leverage ratio at 1.1.

• Dividend proposal of EUR 0.60 per share, a 58% payout ratio and 4.1% yield.

Outlook and guidance

• 2025 revenue guidance: EUR 2.1–2.3 billion; EBIT margin expected between 6.5% and 7.5%.

• Net working capital ratio target for end-2025 is around 30%; planned investments of EUR 100 million.

• Q1 2025 expected to remain weak, with improvements anticipated from Q2 onward.

• German infrastructure fund presents upside potential not yet included in 2025 guidance.

• Market recovery anticipated after a weak Q1, with improved cost position supporting profitability.