RATIONAL (RAA) Q3 2024 earnings summary

Executive summary

• Sales revenue for Q3 2024 grew by 8% to EUR 294 million, with nine-month 2024 sales up 5% to over EUR 875 million, and Americas as the primary growth driver.

• EBIT for the first nine months rose 12% to EUR 227 million, with an EBIT margin of 25.9% and gross profit margin improving to 58.9%.

• iVario sales grew by 12% and iCombi by 4% for nine months 2024, with iVario outperforming.

• Employee satisfaction remains high, with 90% satisfied and 88% proud to work at the company.

• Opened a new training center in Bangalore, India, and continued investments in production facilities in Germany and China.

Financial highlights

• 2023 sales reached EUR 1.126 billion, up 10% year-over-year.

• Q3 2024 sales revenues were EUR 294 million, up 8% year-over-year.

• EBIT for nine months 2024 was EUR 227 million, up 12% year-over-year.

• Net income for nine months 2024 was up 13% to as high as EUR 178.7 million.

• Equity ratio stands at 75%, and liquidity ratio at 43%, with EUR 430 million in liquid funds.

Outlook and guidance

• Full-year 2024 sales growth expected in the mid to high single-digit range, with EBIT margin around 26%.

• Gross margin improvement stronger than forecasted due to easing input costs.

• CapEx expected to normalize at 3%-4% of sales revenues.

• Input costs (COGS) expected to remain stable into 2025.

• Absolute EBIT for 2024 expected close to analyst consensus of EUR 305.2 million.