Bertrandt (BDT) Q3 24/25 earnings summary

Executive summary

• Nine-month and Q3 results reflect significant pressure in the automotive sector due to declining sales in China, weak economic conditions, and tariff uncertainties, leading to profit warnings, cost optimization, and workforce reductions.

• Despite challenges, strong R&D project pipeline and two major five-year defense contracts were secured, supporting diversification and a strategic goal to reach 20-25% non-automotive sales by 2027.

• Cost-saving initiatives, including the F³/'Fit for Future' programs, have been implemented, targeting EUR 70-90 million in annual savings, with further measures in admin and leadership structures.

• Q3 was the weakest quarter, impacted by only 59 working days and underutilization, but management remains optimistic for Q4 due to more working days and cost savings.

• Ongoing diversification efforts focus on Aerospace/Defence, with Porsche remaining a 29% shareholder and new board member added.

Financial highlights

• Sales for the nine months reached EUR 742 million, down 19% year-over-year; Q3 sales were EUR 226 million, a 23% decline year-over-year.

• EBIT was negative EUR 39 million for nine months, including EUR 12 million in one-off items; Q3 EBIT was EUR -25 million.

• Free cash flow was positive at EUR 16.87 million for the period, but negative EUR 11 million in Q3.

• Equity stands at EUR 306-316 million with a stable equity ratio of 41.5%.

• CapEx in Q3 was EUR 2.6 million; cash and cash equivalents at EUR 93 million.

Outlook and guidance

• Q4 expected to benefit from more working days and further cost savings from optimization programs.

• FY 2024/2025 revenues expected to decline by more than 10% year-over-year, with EBIT to improve but remain uncertain.

• FY 2025/2026 EBIT margin targeted at 6-9% based on EUR 70-90 million in savings.

• Cash flow from operating activities expected to remain positive but significantly lower.

• Ongoing international expansion with new sites in Mexico and Sweden.