Wacker Neuson (WAC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 16.8% year-over-year to €493.5m, reflecting lower order intake in H2 2024 and a slow business start, but order intake has shown promising recovery since the turn of the year.

• EBIT margin dropped to 2.5% from 6.2% in Q1 2024, with profitability impacted by lower volumes.

• Free cash flow improved to €19.4m, marking the fourth consecutive quarter of positive free cash flow and up from negative €25.1m in Q1 2024.

• Strategy 2030 and 2025 action plans remain on track, with gradual recovery expected in coming quarters.

• The Bauma 2025 trade fair provided positive momentum, with record visitor numbers and strong customer feedback.

Financial highlights

• Revenue: €493.5m (-16.8% YoY); gross profit: €108.2m (-22.0% YoY); gross margin: 21.9% (-1.5pp YoY).

• EBIT: €12.1m (-67.2% YoY); EBIT margin: 2.5% (-3.7pp YoY); EPS: €0.06 (-82.4% YoY).

• Free cash flow: €19.4m (Q1 2024: €-25.1m); net financial debt reduced to €298m; leverage ratio at 1.1.

• Equity ratio stable at 60%; market capitalization at €1,026.8m.

• Net working capital ratio at 32.8% of LTM revenue, slightly higher than Q4 2024 due to lower revenue.

Outlook and guidance

• 2025 revenue guidance reaffirmed at €2,100m–€2,300m; EBIT margin expected between 6.5% and 7.5%.

• Investments planned at around €100m; net working capital targeted at ~30% of turnover.

• Book-to-bill ratio year-to-date is around 1.4, indicating a positive trend, especially in Europe.

• Economic recovery and increased order intake expected from Q2 2025, with business climate indices showing first signs of stabilization.

• Strategy 2030 remains the guiding framework, focusing on efficiency and higher profitability.