JOST Werke (JST) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a challenging market with significant sales declines, but operational progress included the successful Capital Markets Day, Hyva Group acquisition announcement, and plant consolidations in China and North America to support profitability and global reach.

• Strategic initiatives included expanding agricultural operations in Brazil, accelerating R&D through partnerships with Trailer Dynamics and Fernride, and investing in future business.

• Despite market headwinds, the company maintained strong profitability, robust free cash flow, and a stable leverage ratio of 1.0x.

• ROCE stood at 19% and adjusted EPS at €4.04 for the first nine months of 2024, reflecting strong shareholder value.

• The company aims to leverage the current environment to strengthen its market position and resilience.

Financial highlights

• Q3 2024 sales were €246.3 million, including €14 million from M&A; adjusted EBIT was €26.5–27 million with a 10.8% margin.

• Free cash flow reached €83.4 million for the first nine months of 2024; adjusted EPS was €4.04, and the adjusted net earnings to sales ratio was 7.1%.

• Group sales declined 20% organically year-over-year in Q3; transport down 22.7–23%, agriculture up 18.8–19% due to acquisitions.

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

• 9M 2024 sales were €843 million, down 12.6% year-over-year; adjusted EBIT for 9M was €94.9 million (margin 11.3%).

Outlook and guidance

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

• CapEx (excluding M&A) is projected at 2.5–2.9% of sales; working capital is expected below 19% of sales.

• No significant sequential improvement is expected in Q4; guidance remains unchanged, and market recovery is anticipated in 2025.

• Leverage ratio (net debt/adjusted EBITDA) expected to improve below 1.0x.