JOST Werke (JST) Q2 2024 earnings summary

Executive summary

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

• Free cash flow for H1 2024 was €60.6 million, up 80.2% year-over-year, with leverage below 1x after a €22 million dividend payment.

• Strategic investment of €15 million for a 10% stake in Trailer Dynamics to accelerate eTrailer technology and decarbonization efforts.

• ROCE reached 19.7% and cash conversion rate was 1.3 in H1 2024, reflecting strong shareholder value.

• 2024 outlook confirmed, leveraging current market conditions to strengthen positioning and resilience.

Financial highlights

• Q2 2024 sales: €298.2 million (-9.8% YoY); H1 2024: €596.7 million (-11.2% YoY); adjusted EBIT margin held at 11.3% in Q2 and 11.5% in H1.

• Adjusted EPS for H1 2024 was €3.07; reported EPS was €2.31, down from €3.01 in H1 2023.

• Free cash flow in H1 2024: €60.6 million; cash conversion rate: 1.3.

• Net debt reduced to €168.1 million; leverage stable at 0.99x.

• Equity ratio at 38.9% as of June 30, 2024.

Outlook and guidance

• 2024 sales and adjusted EBIT expected to decline single digits year-over-year, with EBIT margin in the upper half of the 10.0%-11.5% corridor.

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

• Market demand in Europe and North America expected to contract, while Asia-Pacific-Africa remains stable or grows slightly.

• Investments (excl. acquisitions) to focus on Brazil and APA.

• Net working capital to revenue expected below 19%; leverage ratio to improve further, below 1.0x.