Bucher Industries (BUCN) Q3 2024 earnings summary

Executive summary

• Net sales for the last twelve months declined to CHF 3.1 billion, with order intake and order book both down significantly year-over-year.

• EBIT margin dropped to 10.3% in HY1 2024 from 12.7% in HY1 2023, reflecting lower volumes and market slowdown.

• Profit for the period fell 27.2% to CHF 145 million for HY1 2024, with EPS at CHF 14.07.

• Demand for products and services declined in the first nine months of 2024, with agriculture and glass segments most affected.

• Bucher Municipal outperformed other divisions, achieving sales growth.

Financial highlights

• Order intake for January–September 2024 was CHF 1,962 million, down 19.7% year-over-year; net sales fell 11.4% to CHF 2,420 million.

• Order book decreased 35.1% year-over-year.

• EBIT for HY1 2024 was CHF 178 million, down 27.9% from HY1 2023; profit margin at 10.3%.

• Operating free cash flow improved to CHF -51 million from CHF -77 million in HY1 2023, mainly due to seasonal factors.

• Average number of FTEs declined by 3.7%.

Outlook and guidance

• Group expects lower sales and a decline in operating profit margin to the high single-digit range for 2024.

• Profit for the year anticipated to be lower than the prior year.

• Kuhn Group anticipates a decrease in sales and significantly lower operating profit margin.

• Bucher Municipal projects sales in line with 2023 and a likely increase in operating profit margin, but below 9% target.

• Sale of a non-operational property could increase the operating profit margin by 1.4 percentage points if completed in 2024.