INDUS grows sales and adjusted EBITA in Q3

INDUS grows sales and adjusted EBITA in Q3

• Sales at EUR 1,282.2 million, EBIT at EUR 95.9 million at 9-month stage
• Engineering and Infrastructure make higher income contributions
• Fourth acquisition in 2024: Ship equipment manufacturer DECKMA strengthens Engineering segment

Bergisch Gladbach, 11 November 2024 – The third quarter of 2024 saw the portfolio companies of stock exchange listed INDUS Holding AG increase their sales and their adjusted EBITA compared to the first and second quarter of the year. “Although the economy remains weak, our Group was able to stay on track and to successfully improve its operating performance over the course of the year,” says Dr. Johannes Schmidt, Chairman of the INDUS Board of Management. At EUR 443.1 million (previous year: EUR 459.7 million), third-quarter sales exceeded the sales generated in the first two quarters of 2024. Operating income (EBIT) amounted to EUR 31.8 million in the third quarter, which was close to the prior year level (EUR 32.1 million). In the scheduled annual impairment test as of 30 September 2024, INDUS recognized impairment losses of EUR 6.7 million on goodwill and intangible assets (previous year: EUR 17.6 million). At EUR 43.7 million in Q3, adjusted EBITA (EBIT plus impairments and PPA depreciation), which is an indicator of the Group’s operating performance, showed a positive trend over the year.

Nine-month sales amounted to EUR 1,282.2 million (previous year: EUR 1,363.8 million), while the Group’s operating income (EBIT) stood at EUR 95.9 million (previous year: EUR 116.9 million). The EBIT margin stood at 7.5% (previous year: 8.6%). The Group’s adjusted EBITA before PPA depreciation and impairments totaled EUR 117.6 million (previous year: EUR 149.2 million). The margin of adjusted EBITA was 9.2% (previous year: 10.9%). “While this is below the previous year’s level, it represents an increase on the first half of 2024 and shows that the portfolio companies adapted well to the difficult external circumstances,” says Schmidt.

Earnings after taxes clearly above previous year

Earnings after taxes increased to EUR 50.0 million (previous year: EUR 43.4 million). Earnings per share of the continuing and discontinued operations rose to EUR 1.89 (previous year: EUR 1.60).

Engineering and Infrastructure make higher earnings contributions; market pressure in Materials

The portfolio companies in the Engineering segment were able to grow their sales and income in the third quarter compared to the previous quarters despite the difficult environment. The segment’s EBIT margin picked up noticeably to 9.0% in Q3. Nine-month sales stood at EUR 418.6 million (previous year: EUR 434.2 million). EBIT amounted to EUR 27.6 million (previous year: EUR 39.7 million). Following the acquisition of AI specialist GESTALT AUTOMATION and of COLSON, a manufacturer of industrial valves for measurement and control engineering, INDUS further strengthened the Engineering segment by acquiring DECKMA in August 2024. As a system supplier of technical marine equipment, DECKMA specializes in lighting and fire alarm systems, corrosion protection technology, and automation solutions for ships.

The portfolio companies in the Infrastructure segment were able to grow their income noticeably in the reporting period in spite of the weak construction activity. Sales totaled EUR 425.2 million (previous year: EUR 444.7 million). The remaining shares in glass fiber infrastructure specialist GRIDCOM were acquired in March 2024. The segment’s EBIT increased to EUR 43.5 million (previous year: EUR 36.9 million), with the EBIT margin climbing to 10.2% (previous year: 8.3%). At EUR 53.2 million (previous year: EUR 48.2 million) and 12.5% (10.8%), respectively, adjusted EBITA and the corresponding margin also clearly exceeded the previous year’s level. Impairment losses of EUR 5.2 million were recognized in the Materials segment. The Board of Management continues to project slightly lower sales for the full year, while EBIT are now expected to increase slightly (previously: strongly), essentially because of the impairment losses recognized. Accordingly, the EBIT margin is expected to amount to between 9% and 11% (previously: 10% to 12%).

The performance of the Materials segment continues to be adversely affected by cyclically induced price declines and, in particular, volume declines in the metal processing industry. Sales stood at EUR 437.8 million at the nine-month stage (previous year: EUR 484.4 million). Adjusted EBITA amounted to EUR 41.5 million (previous year: EUR 58.1 million). The margin of adjusted EBITA was 9.5% (previous year: 12.0%). After the impairment losses of EUR 1.5 million recognized in Q3 and PPA depreciation, EBIT stood at EUR 38.3 million (previous year: EUR 50.5 million). The EBIT margin was 8.7% (previous year: 10.4%).

Free cash flow as planned

In the first nine months of the year, the INDUS Group generated free cash flow of EUR 71.9 million. As had been expected, this was below the prior year level (EUR 106.1 million) due to the weak market situation and correspondingly reduced business activity. The Board of Management continues to project free cash flow above EUR 110 million for the full year. The equity ratio rose to 37.9% as at 30 September 2024 (31 December 2023: 37.3%).

Cautiously optimistic outlook

The Board of Management continues to project Group sales of between EUR 1.70 billion and EUR 1.80 billion for the full year 2024. The Board now expects operating income (EBIT) to come in at between EUR 115 million and EUR 125 million, essentially due to the impairment losses (previously: EUR 125 million to EUR 145 million). The EBIT margin is still expected to be between 7.0% and 8.0%.

“It is already foreseeable today that the year 2025 will also present us with geopolitical and macroeconomic challenges,” says Dr. Johannes Schmidt. “But we are building on a solid foundation, as has been shown by the third quarter.”

About INDUS Holding AG:
Established in 1989 and headquartered in Bergisch Gladbach, INDUS Holding AG is a leading specialist for sustainable corporate development in the German-speaking SME sector. INDUS acquires two to three technology-oriented and promising industrial engineering companies for the Engineering, Infrastructure, and Materials segments annually. As a value-driven investment company with a clear focus on defined growth topics, INDUS provides its operationally independent portfolio companies with active, long-term support in their corporate development, especially in the fields of innovation, market excellence, operational excellence, and sustainability. SDAX-listed INDUS Holding AG has been included in the Prime Standard of the Frankfurt Stock Exchange (DE0006200108) since 1995. INDUS generated sales of around 1.8 billion euros in 2023. For more information, visit www.indus.de.

Note:
This press release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of INDUS Holding AG and comprise known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. INDUS Holding AG assumes no obligation to update forward-looking statements.

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Nina Wolf & Dafne Sanac
Public Relations & Investor Relations