JOST Werke (JST) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €298.2 million, with €21 million from M&A; adjusted EBIT was €33.8 million, maintaining an 11.3% margin despite softer markets.

• Free cash flow for H1 2024 was €61 million, up 80.2% year-over-year; leverage remained below 1x after a €22 million dividend payment.

• Adjusted EPS for H1 was €3.07; adjusted net earnings to sales ratio stood at 7.8%.

• Strategic investment of €15–50 million for a 10% stake in Trailer Dynamics to strengthen R&D in eTrailer technology.

• ROCE reached around 20% and cash conversion rate was 1.3 in H1 2024, reflecting strong shareholder value.

Financial highlights

• Organic sales declined 17% in Europe, 22% in North America, and 2% in Asia Pacific, Africa.

• European sales fell to €166.5 million in Q2, a 6.2% reported decline; EBIT dropped from €14.3 million to €8.3 million.

• North America saw a 22% organic sales decline but achieved a 17.4% Q2 EBIT margin, driven by premium loaders and strong aftermarket.

• Asia Pacific Africa reported a 1.3% sales decline; EBIT decreased 10% to €9.8 million, mainly due to mix effects.

• Group sales declined 10% reported and 16% organically; adjusted EBIT margin held at 11.3%.

Outlook and guidance

• 2024 sales and adjusted EBIT expected to decline single digits from 2023, with EBIT margin in the upper half of the 10–11.5% strategic corridor.

• CapEx to remain between 2.5% and 2.9% of sales; working capital below 19% of sales.

• Market outlook revised downward for trucks and tractors; trailer markets expected to stabilize.

• Ag market recovery anticipated in 2025 as dealer inventories normalize.

• Asia-Pacific-Africa expected to remain stable or grow slightly.