half-year 2024 results lower due to weak market compared to previous year – revised guidance for the fiscal year 2024

Wacker Neuson Group: half-year 2024 results lower due to weak market compared to previous year – revised guidance for the fiscal year 2024

• Preliminary business figures for the first half of 2024:
  • Group revenue amounted to EUR 1,204.8 million in H1 2024
    (-11.8 percent compared to previous year)
  • EBIT margin in H1 2024 at 7.0 percent (-5.9 percentage points compared to previous year)
  • Improved EBIT margin in Q2 2024 at 7.7 percent (an increase of 1.5 percentage points compared to Q1 2024)
• Continuous measures aimed at the reduction of operating costs show positive momentum in the second quarter of 2024
• Guidance 2024 revised due to the weaker expected second half of the year
   

Munich, July 17, 2024 – the Wacker Neuson Group has published preliminary business figures for the first half of 2024 today. Moreover, the Executive Board revised the outlook for the second half of the year and, therefore, the full-year guidance 2024 relying on the preliminary figures. The reasoning behind this is based on persistently weak demand in the construction and agricultural machinery markets, characterised by persistently high dealer inventories, and the uncertain economic outlook. Contrary to the forecast at the beginning of the year, market demand is recovering not as expected, which is reflected in lower order intake and sales. Forward-looking industry indicators do not point to a recovery in the short term.

With 7.7 percent, the Wacker Neuson Group improved the EBIT margin in the second quarter of 2024 compared to the first quarter by 1.5 percentage points. Free cash flow was positive at the end of the first half of 2024, among other things, as a result of successfully reduced inventories. Overall, the reduced production output as well as implemented cost reduction measures could not compensate the weak market demand.

„The overall market and the industry remain weak. Our operating cost reduction measures positively impact the business enabling the margin improvement compared to the previous quarter. We have revised our guidance for 2024 because the current weak phase will last longer than anticipated and continue in the second half of 2024. In the upcoming months we will adjust our cost structures and increase our flexibility for the future.“, adds Dr. Karl Tragl, CEO of the Wacker Neuson Group.
 

Preliminary business figures for the first half of 2024:
Based on the first preliminary business figures the Wacker Neuson Group generated a preliminary revenue of EUR 611.7 million in the second quarter of 2024, amounting to a decrease of 12.5 percent compared to previous year (Q2/2023: EUR 698.7 million). Preliminary earnings before interest and taxes (EBIT) were at EUR 46.9 million, 47.2 percent down compared to previous year (Q2/2023: EUR 88.9 million). The preliminary EBIT margin in the second quarter was 7.7 percent (Q2/2023: 12.7 percent).

The Wacker Neuson Group recorded a preliminary revenue of EUR 1,204.8 million in the first half of 2024, corresponding to a decrease of 11.8 percent compared to the previous year (H1/2023: EUR 1,365.9 million). Preliminary earnings before interest and taxes (EBIT) were at EUR 83.8 million, 52.6 percent down compared to previous year (H1/2023: EUR 176.7 million). Preliminary EBIT margin in the first half of 2024 was 7.0 percent (H1/2023: 12.9 percent).

Investments amounted to EUR 48.3 million (H1/2023: EUR 69.2 million) in the first half of 2024. As of June 30, the net working capital ratio was 37.0 percent based on the annualized previous quarter’s revenue (December 31, 2023: 33.9 percent).

The final first half of 2024 business figures of the Wacker Neuson Group will be published on August 13, 2024.
 

Revised Guidance 2024
For the current fiscal year the Executive Board now anticipates the revenue between EUR 2,300 million and EUR 2,400 million (previously: 2,400 und 2,600 Mio. Euro) with an EBIT margin in the range of 6.0 to 7.0 percent (previously: 8.0 to 9.0 percent). Investments for the full year are expected to amount to around EUR 100 million (previously: EUR 120 million). The net working capital ratio at the year-end of 2024 is expected to amount to around 34 percent (previously: around 30 percent). The revised guidance reflects the business development in the first half of 2024 and accounts for the possible changes in the economic development over the course of the year.

The changed guidance has no impact on the implementation of the Strategy 2030 along its ten strategic levers. A revenue of EUR 4 billion, an EBIT margin greater than 11 percent as well as a net working capital ratio of less than 30 percent remain the long term perspective.

Contact:

Wacker Neuson SE
Peer Schlinkmann
Investor Relations
Preußenstraße 41
80809 Munich
Tel. +49-(0)89-35402-1823
ir@wackerneuson.com

www.wackerneusongroup.com

For press images relating to the Wacker Neuson Group, please see: wackerneusongroup.com/en/group/press-and-news 

About the Wacker Neuson Group:
The Wacker Neuson Group is an international network of companies, employing around 6,600 people worldwide. In fiscal 2023, the Group achieved revenue of EUR 2.7 billion. As a leading manufacturer of light and compact equipment, the Group offers its customers a broad portfolio of products, a wide range of services and an efficient spare parts service. Wacker Neuson Group is the partner of choice among professional users in construction, gardening, landscaping and agriculture, as well as among municipal bodies and companies in industries such as recycling and rail transport. The product brands Wacker Neuson, Kramer and Weidemann belong to the Group. Wacker Neuson SE shares are listed on the regulated Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE000WACK012, WKN: WACK01) and are member of the SDAX.