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hGears (HGEA) investor relations material
hGears Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Solid H1 2025 results achieved despite challenging market conditions, supported by production brought forward, cost-saving measures, and structural adjustments.
e-Tools segment grew 19.4% year-over-year, partially offsetting declines in e-Bike (-28.6%) and e-Mobility (-3.0%) revenues.
Cost-saving measures, including workforce reductions and short-time work, led to improved adjusted EBITDA and a smaller net loss.
Equity ratio remained solid at 47.8%, with net debt increasing due to new leasing liabilities and free cash flow at EUR -2.3 million.
Management remains cautious but expects medium- to long-term growth from structural demand in all business areas.
Financial highlights
H1 2025 sales were EUR 49.5 million, down 1.8% year-over-year; Q2 sales matched prior year but declined 2.5% sequentially.
Adjusted gross profit margin was 45.6%, slightly down from 46.7% in H1 2024.
Adjusted EBITDA improved to EUR 1.1 million (margin 2.2%), more than doubling from last year due to cost savings.
Free cash flow was EUR -2.3 million, compared to EUR -1.7 million last year.
Net result improved to EUR -6.5 million (H1 2024: EUR -8.1 million); EPS at EUR -0.62.
Outlook and guidance
Full-year 2025 guidance reaffirmed: revenue EUR 80–90 million, adjusted EBITDA of EUR -4 to -1 million, free cash flow EUR -6 to -2 million.
No recovery expected in end markets for the remainder of 2025; cautious optimism for e-Tools and e-Mobility, with e-Bike recovery anticipated in 2026.
Production volumes brought forward in H1 will not be available in H2, so H2 performance expected to be lower.
Management remains cautious due to high e-bike inventories, automotive sector challenges, and global uncertainties.
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