Stabilus (STM) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue rose 7.8% year-over-year to €338 million, driven by Destaco integration, while organic revenue declined 5% due to market softness and price pressure, especially in China.

• Adjusted EBIT margin was 11.2% in Q2 and 11.4% for H1; profit margins declined due to higher costs and one-off reorganization expenses.

• Destaco integration completed, contributing significantly to sales and EBIT margin, with €91.7 million in revenue and €17.1 million in adjusted EBIT (18.6% margin) in H1.

• FY2025 guidance confirmed: revenue €1.3–1.45 billion, adjusted EBIT margin 11–13%, adjusted free cash flow €90–140 million.

• Market volatility, especially due to tariffs, economic uncertainty, and global trade conflicts, remains a key concern.

Financial highlights

• Q2 FY2025 revenue was €338 million (+7.8% y/y); organic revenue -5%, M&A +14.9%, FX -2.1%.

• Adjusted EBIT margin for Q2 was 11.2%; H1 at 11.4%.

• Q2 FY2025 profit was €11.2 million (-38.1% y/y); H1 profit €25.5 million (-15.6% y/y).

• Adjusted free cash flow for H1 was €27 million, down 32.3% y/y; Q2 adjusted FCF was €18.1 million (+389.2% y/y).

• Net leverage ratio increased to 2.97x (from 2.82x), mainly due to Destaco funding.

Outlook and guidance

• FY2025 guidance reaffirmed: revenue €1.3–1.45 billion, adjusted EBIT margin 11–13%, adjusted free cash flow €90–140 million.

• Earnings expected to be back-end loaded due to challenging market and macroeconomic uncertainty.

• Guidance assumes no escalation in global trade conflicts or further tariff increases.

• Long-term target: €2 billion revenue and ~15% adjusted EBIT margin by FY2030.

• Second half expected to benefit from operational improvements and automation investments made in H1.