Stabilus (STM) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue increased 14.4% year-over-year to €350.7 million, driven by the first-time consolidation of DESTACO, offsetting organic declines in EMEA and Americas, while APAC saw positive organic growth.

• Organic revenue growth was positive in APAC (+3.2%), but declined in EMEA (-5.1%) and Americas (-3.0%), mainly due to lower volumes from major OEMs and the electric vehicle segment.

• Profitability was pressured by lower fixed cost absorption and significant inflation in material, labor, and energy costs, only partially recovered from customers.

• Integration of DESTACO is progressing ahead of schedule, contributing €48.8 million in revenue and a 19.9% EBIT margin in its first quarter, supporting the STAR 2030 strategy.

• Cost flexibilization and efficiency programs were expanded globally to counteract volume reductions and labor inflation.

Financial highlights

• Q3 FY2024 revenue rose to €350.7 million from €306.5 million year-over-year; 9M revenue up 6.8% to €969.6 million.

• Adjusted EBIT for Q3 was €43.1 million (12.3% margin); 9M adjusted EBIT was €115.2 million (11.9% margin).

• Net profit for Q3 was €24.3 million, up 12% year-over-year; 9M profit fell 31.7% to €54.5 million due to higher costs and one-off acquisition expenses.

• Free cash flow for Q3 reached €37.9 million, aided by the absence of a prior year €6.2 million tax payment; 9M adjusted free cash flow was €77.8 million.

• Net leverage ratio rose to 2.8x from 0.3x, reflecting acquisition financing.

Outlook and guidance

• FY2024 revenue guidance confirmed at €1.3–1.35 billion, with adjusted EBIT margin of 11.7–12.3%, revised down from previous guidance.

• Q4 expected to show stabilization in demand and margins, but no material recovery anticipated; subdued global automotive and industrial production expected.

• Integration costs for DESTACO projected at €4–5 million in Q4, included in guidance.

• STAR 2030 initiatives and automation investments to drive long-term resilience.