JOST Werke (JST) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a soft market environment with significant declines in key regions, but operational activity remained high, including strategic acquisitions and plant consolidations.

• The acquisition of Hyva Group was announced, expanding the portfolio and strengthening the position in hydraulic tipping cylinders and Asian markets, positioning for growth in off-highway and global presence.

• Continued localization and expansion in Brazil, consolidation of manufacturing sites in China and North America, and operational excellence initiatives supported profitability.

• R&D investments accelerated, focusing on innovation and transformation in transport and agriculture, with strategic partnerships such as Trailer Dynamics and Fernride.

• Free cash flow and working capital management remained strong, keeping leverage at 1.0x and supporting shareholder value.

Financial highlights

• Q3 2024 sales reached €246.3 million, including €14 million from recent M&A; adjusted EBIT was €26.5 million with a margin of 10.8%.

• Free cash flow for the first nine months was €83.4 million; leverage remained at 1.0x EBITDA.

• Adjusted EPS for the nine months was €4.04; adjusted net earnings to sales ratio stood at 7.1%.

• Organic sales declined 20% year-over-year, with transport down 22.7% and agriculture up 18.8% due to acquisitions.

• EBIT margin decreased from 11.4% to 10.8% year-over-year.

Outlook and guidance

• Full-year 2024 sales expected to be down 15% year-over-year, with EBIT margin between 10.5% and 11%.

• CapEx projected at 2.5–2.9% of sales; working capital to remain below 19% of sales.

• No significant sequential improvement expected in Q4; recovery in India and agriculture anticipated in the second half of 2025.

• Hyva acquisition expected to close in Q1 2025, with integration preparations underway.