Dürr (DUE) Q3 2024 earnings summary

Executive summary

• Order intake reached a record €4.0 billion for the first nine months, up 14% year-over-year, driven by strong automotive demand, modernization projects, and large projects in Europe and the Americas.

• Sales increased 4% year-over-year to €3.44 billion, with resilient service business and margin growth offsetting declines at HOMAG.

• EBIT margin before extraordinary effects improved sequentially to 5.6% in Q3; EBIT before extraordinary effects for 9M at €179.5 million (margin 5.2%).

• Free cash flow was strong at €82 million after nine months, supported by high order intake and disciplined working capital management.

• Net income/earnings after tax decreased by 24% year-over-year, mainly due to higher PPA effects from acquisitions and increased interest costs.

Financial highlights

• Book-to-bill ratio for nine months at 1.16; order backlog at €4.52 billion, slightly down due to FX effects.

• EBIT before extraordinary effects down 4% year-over-year; margin 80 bps lower, mainly due to a strong prior-year base at HOMAG.

• Book gain of €18.9 million from the sale of Agramkow positively impacted Q3 results.

• Net financial debt/liabilities decreased to €462 million; leverage at 1.4x net debt/EBITDA.

• Gross margin at 21.2% for 9M 2024, down from 23.0% due to extraordinary expenses.

Outlook and guidance

• 2024 guidance confirmed, with confidence in reaching the upper end for order intake and free cash flow; revenues expected at the lower half of the range due to project delays.

• EBIT margin before extraordinary effects forecast at 4.5–6.0%; free cash flow at €0–50 million, with top end likely.

• Segment guidance adjusted: Application Technology order intake raised to €750–800 million; Industrial Automation Systems lowered to €700–800 million.

• Mid-cycle targets for sales, EBIT margin, and ROCE remain unchanged; EBIT margin target of at least 8% not expected before 2026.