Stabilus (STM) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 7.5% year-over-year to €1,305.9m, driven by M&A and organic growth despite challenging market conditions, confirming preliminary results and annual report data.

• Adjusted EBIT margin reached 12%, meeting revised guidance, but declined by 1.0pp due to higher D&A, advisory costs, and Destaco integration expenses.

• Net profit dropped 30.3% year-over-year to €72.0m, with EPS at €2.84, down 31.1%, mainly due to DESTACO purchase price allocation (PPA) impacts.

• Strong adjusted free cash flow of €132.8m, up 23.8% year-over-year, aided by DESTACO and net working capital optimization.

• Paid/proposed dividend of €1.15 per share, representing 40% of net income, at the upper end of policy.

Financial highlights

• Revenue increased to €1.305 billion, up 7.5% year-over-year, with M&A contributing 9.1% and organic growth 0.6%.

• Adjusted EBIT decreased 0.8% year-over-year to €157.1m; margin at 12%.

• Net profit margin fell to 5.5% from 8.5% in FY2023.

• Adjusted FCF increased to €132.8m, representing 10.2% of revenue.

• Net debt reduced by €51.8m in the last six months; net leverage ratio stable at 2.8.

Outlook and guidance

• FY2025 revenue forecasted at €1.3bn–€1.45bn, with adjusted EBIT margin of 11%–13% and adjusted FCF expected between €90m and €140m.

• Guidance range widened due to market volatility and economic uncertainty; earnings anticipated to be back-end loaded.

• CapEx planned at 5%–6.3% of sales, focused on automation, innovation, and product development.

• Dividend policy remains at 20%–40% of net income.