Huber+Suhner (HUBN) H2 2024 earnings summary

Executive summary

• Achieved double-digit growth in order intake (+10.5%) and net sales (+5.0%) year-over-year, with EBIT margin rising to 9.7% from 9.1%, driven mainly by the communication segment in Asia.

• Communication segment drove growth, offsetting declines in Transportation; Industry segment stable.

• Business performance was marked by a strong first half in order intake and a strong second half in sales, with normalization in industrial sub-markets as overstocking issues subsided.

• Solid operational performance despite economic and geopolitical uncertainties.

Financial highlights

• Order intake: CHF 908.0m (+10.5%); Net sales: CHF 893.9m (+5.0%) compared to 2023.

• Organic order intake growth was 11.9%, with currency, copper, and portfolio effects slightly negative.

• EBIT increased by 12% to CHF 86.6 million, with an EBIT margin of 9.7%.

• Net liquidity rose to CHF 184 million, and equity ratio remained strong at 74%.

• Free operating cash flow: CHF 53.4m; dividend proposed at CHF 1.90 per share, up 12%, with a payout ratio of 49%.

Outlook and guidance

• Net sales for 2025 expected to be at the 2024 level, with EBIT margin guidance maintained at 9-12%.

• Growth initiatives in most segments expected to continue, except for electric vehicles, which is not anticipated to recover in 2025.

• Cautious outlook due to the need to replace a large Indian project and ongoing market uncertainties.