Stabilus SE closes Q2 FY2024 with a slight increase in revenue

CORPORATE NEWS

Stabilus SE closes Q2 FY2024 with a slight increase in revenue

• Revenue increases by 0.9% to €313.5 million in Q2 FY2024 despite challenging environment, APAC region primary growth driver

• Adjusted EBIT^[1] in Q2 at €38.9 million compared to €40.8 million in Q2 FY2023, corresponding to a margin of 12.4% (Q2 FY2023: 13.1%)

• Q2 result at €18.1 million (Q2 FY2023: €42.6 million); Prior-year quarter impacted by significant positive tax effect

• Adjusted FCF^[1] of €3.7 million (Q2 FY2023: €12.1 million)

• Forecast for fiscal 2024 further specified to the lower end of the expected range of €1.4 billion to €1.5 billion for revenue and 13% to 14% for the adjusted EBIT margin^[1] ; Catch-up effect expected in the second half of the year

• Acquisition of DESTACO successfully completed; Initial consolidation as of March 31, 2024

Koblenz, May 8, 2024 – Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8), one of the world's leading suppliers of motion control solutions for a wide range of industries, closed the second quarter of fiscal 2024 ended March 31, 2024 with slight revenue growth in a challenging market environment. The positive development in the Asia-Pacific region (+12.1% revenue growth) and the stable development in the EMEA region (+0.2%) more than offset the weak demand in the Americas region (-4.1%). The Automotive (especially Automotive Powerise), Aerospace, Marine & Rail (AMR) and Health, Recreation & Furniture (HRF) segments were particularly strong.

Group revenue in the second quarter of FY2024 increased by 0.9% to €313.5 million compared to the same quarter of the previous year (Q2 FY2023: €310.6 million).

As of March 31, 2024, Stabilus has successfully completed the acquisition of industrial automation specialist DESTACO and included the company in the scope of consolidation. From the beginning of the third quarter of 2024, DESTACO will thus contribute to the Stabilus Group's revenue and earnings. In 2023, DESTACO generated revenues of US$206 million with an adjusted EBIT margin of 20%.

Dr. Michael Büchsner, CEO of Stabilus, said: "The revenue growth in a persistently difficult market environment is primarily due to our diversification, both regionally and with regard to the large number of industries in which our motion control products are used. For example, we are encouraged by sales of our DA90 door actuator for the powered opening and closing of car doors, of which we have sold a record number of more than 110,000 units in the past six months. At the same time, we are already laying the foundation for the cooperation and strategic development of the Stabilus Group with several meetings of the Stabilus and DESTACO management teams in the USA, Germany, India and China over the past few days. I was very impressed by the motivation and innovative spirit of the employees at DESTACO."

Stefan Bauerreis, CFO of Stabilus, added: "As in previous years, we expect stronger demand in the third and fourth quarters of the current fiscal year, which makes us confident that we will achieve our specified full-year forecast. Over the next two to three years, we plan to reduce our net leverage ratio, which has risen to 2.8 as a result of the acquisition of DESTACO, back to below 2.0 based on the anticipated positive development of the company."

APAC and EMEA drive revenue growth in Q2 FY2024

In the EMEA region, revenue increased by 0.2% to €137.5 million in Q2 FY2024 (Q2 FY2023: €137.2 million). In particular, the Aerospace, Marine & Rail (AMR) segment has stood out in this region with strong growth. In the Asia-Pacific (APAC) region, the company recorded a year-on-year revenue increase of 12.1% to €66.7 million (Q2 FY2023: €59.5 million), mainly due to a very good performance in the Automotive segments, especially Powerise, Industrial Machinery & Automation (IMA) and Distributors, Independent Aftermarket, E-Commerce (DIAMEC). Demand in the Americas region remains below the previous year's level, despite a rebound in business, which led to a 4.1% decline in revenue to €109.3 million in the quarter (Q2 FY2023: €114.0 million). Positive growth impetus in this region came from the Health, Recreation & Furniture (HRF), Commercial Vehicles (CV) and Automotive segments.

Broken down by market segment, Stabilus achieved growth in Aerospace, Marine & Rail (+66% y/y), Health, Recreation & Furniture (+6% y/y) and Automotive (+5% y/y).

Adjusted EBIT margin of 12.4% in second quarter 2024

Adjusted operating profit (adjusted EBIT^[1]) decreased by 4.7% to €38.9 million in Q2 FY2024 (Q2 FY2023: €40.8 million). This corresponds to an adjusted EBIT margin of 12.4% compared to 13.1% in Q2 FY2023. The main reasons for this development continued to be high material procurement costs and increased personnel costs.

In Q2 FY2024, profit was €18.1 million (Q2 FY2023: €42.6 million), with profit in the prior-year quarter positively impacted by a one-off tax refund for fiscal years 2010 to 2014. Free cash flow before acquisitions (adj. FCF^[1]) was €3.7 million compared to €12.1 million in Q2 FY2023.

Forecast for fiscal 2024 further specified to the lower end of the expected range

Due to the challenging environment, Stabilus further specifies its forecast for fiscal 2024 at the lower end of the expected range of €1.4 billion to €1.5 billion for revenue and 13% to 14% for the adjusted EBIT^[1] margin. As in previous financial years, Stabilus expects a stronger business development in the third and fourth quarters of the fiscal year.

The interim report for the first half and the second quarter of fiscal 2024 can be downloaded on the company’s website at ir.stabilus.com.

________________________

^[1] Cf. definition/calculation of KPI’s adjusted EBIT and adjusted FCF in our Interim Report H1 FY2024, pages 20 and 25, that can be downloaded from the company’s website at ir.stabilus.com.

Investor contact:
Andreas Schröder
Tel.: +49 261 8900 8198
E-Mail: anschroeder@stabilus.com
Web: ir.stabilus.com

Press contact:
Peter Steiner
Tel.: +49 69 794090 27
E-Mail: Peter.Steiner@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

Stabilus is one of the world's leading providers of motion control solutions across a broad spectrum of industries including mobility, industrial machinery, automation, energy, construction, health, recreation and furniture. Stabilus offers reliable and innovative solutions that enable, enhance and automate precise movement, positioning, opening, closing, lifting, lowering and adjusting actions. With its operational headquarters in Koblenz, Germany, the Stabilus Group has a global production and sales network with more than eight thousand employees and reported revenue of €1.2 billion in the 2023 fiscal year. Stabilus SE is listed in the Prime Standard segment of the Frankfurt Stock Exchange and is included in the MDAX index. Further information is available at group.stabilus.com and ir.stabilus.com.

Important Notice

This press release may contain certain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.