Stabilus SE consolidates DESTACO for the first time, increasing both its revenue and result in Q3 FY2024

CORPORATE NEWS

Stabilus SE consolidates DESTACO for the first time, increasing both its revenue and result in Q3 FY2024

• Revenue growth of 14.4% to €350.7 million in Q3 FY2024 (Q3 FY2023: €306.5 million), in particular due to the initial consolidation of DESTACO
• In Q3 FY2024, DESTACO contributed €48.8 million to revenue with an EBIT margin of 19.9%
• Organic revenue growth in APAC; especially EMEA and Americas impacted by reduced call-off volumes in Automotive and Commercial Vehicles
• Adjusted EBIT ^[1] in Q3 FY2024 at €43.1 million compared to €41.9 million in Q3 FY2023, corresponding to an adjusted EBIT margin of 12.3% in Q3 FY2024
• Q3 result at €24.3 million (Q3 FY2023: €21.7 million) and adjusted FCF ^[1] at €37.9 million (Q3 FY2023: €48.3 million)
• The updated forecast of June 2024 is confirmed and the integration of DESTACO is fully on track

Koblenz, July 29, 2024 – Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8), one of the world's leading suppliers of motion control solutions for a wide range of industries, today published its quarterly statement for the third quarter of fiscal year 2024 (Q3 ended June 30, 2024). The company benefited from DESTACO's initial consolidation in terms of both revenue and adjusted EBIT.

Group revenue in the third quarter of FY2024 increased by 14.4% year-on-year to €350.7 million (Q3 FY2023: €306.5 million). Adjusted for acquisition and currency effects, Group revenue decreased by 2.5%, mainly due to reduced call-off volumes in the Automotive and Commercial Vehicles segments.

Dr. Michael Büchsner, CEO of Stabilus, said: "Due to the initial consolidation of DESTACO, we significantly increased our revenue in the third quarter by more than 14% and the integration of DESTACO is progressing as planned. On the other hand, an unexpected decline in call-offs for our products at some OEMs, especially in the electric car segment, had a significant impact on our automotive business in the third quarter. For this reason, we adjusted our forecast for the full year in June. However, we expect to overcome the current challenges, which include rising labor and material costs, in the next few quarters. “

Stefan Bauerreis, CFO of Stabilus, added: "We are pleased that with DESTACO we have already received very positive customer feedback and are very satisfied with the progress in the integration. We are also currently preparing the refinancing of the bridge loan for the transaction. The Stabilus Group's investment priorities will continue to be in the areas of radar technology and intelligent door actuation, as well as in the automation of our production. New applications for existing products and innovative new and further developments will lead not only to revenue growth, but also to improved profitability."

APAC grows organically, while EMEA and Americas report a downturn

In the EMEA region, revenue increased by 8.5% to €140.9 million in Q3 FY2024 (Q3 FY2023: €129.9 million). Adjusted for acquisition and currency effects, this resulted in a decline of 5.1%. In the Americas region, revenue grew by 21.8% year-on-year to €133.9 million (Q3 FY2023: €109.9 million). The consolidation effect was strongest in DESTACO's home market. Adjusted for acquisition and currency effects, this resulted in a decline of 3.0%. In the Asia-Pacific (APAC) region, the company recorded revenue growth of 13.8% year-on-year to €75.9 million (Q3 FY2023: €66.7 million). In contrast to the EMEA and Americas regions, Stabilus achieved organic growth of 3.2% in the APAC region, but this was not sufficient to compensate for weak demand in the other regions.

Automotive burdened by reduced call-off volumes from OEMs

In the Automotive Gas Spring business unit, the company recorded an increase of 2.7% to €88.8 million (Q3 FY2023: € 86.5 million). Revenue in the Automotive Powerise business unit decreased by 4.7% in Q3 FY2024 to €103.4 million (Q3 FY2023: €108.5 million). In the third quarter, both units were characterized by a short-term decline in OEM call-offs for Stabilus products. In particular, there was a significant decline in call-offs for electric vehicle products.

By market segment, Stabilus recorded strong revenue increase in Industrial Machinery & Automation, which benefited from the initial consolidation of DESTACO (€48.8 million revenues with an EBIT margin of 19.9% in Q3 FY2024), as well as growth in Aerospace, Marine & Rail (AMR), Distributors, Independent Aftermarket, E-Commerce (DIAMEC). In the other market segments, there were slight declines in the third quarter of 2024.

Adjusted EBIT margin of 12.3% in the third quarter

Adjusted operating profit (adjusted EBIT ^[1]) increased by 2.9% to €43.1 million in Q3 FY2024 (Q3 FY2023: €41.9 million). This corresponds to an adjusted EBIT margin of 12.3% (Q3 FY2023: 13.7%).

In Q3 FY2024, profit was €24.3 million, which was above the figure for the same quarter of the previous year (Q3 FY2023: €21.7 million). At €37.9 million, the adjusted FCF ^[1] was below the previous year's figure (Q3 FY2023: €48.3 million), which is mainly due to the one-time tax refund in the prior-year quarter for the previous fiscal years.

Updated forecast for fiscal 2024 confirmed

Stabilus confirms its forecast updated on June 11, 2024, and continues to expect revenue of €1.3 billion to €1.35 billion with an adjusted EBIT margin of 11.7% to 12.3% for the 2024 fiscal year. The forecast includes the consolidation of DESTACO for the period from April to September 2024.

The quarterly statement for the third quarter and the first nine months of fiscal 2024 can be downloaded on the company's website at ir.stabilus.com.

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^[1] Cf. definition/calculation of KPI’s adjusted EBIT and adjusted FCF in the quarterly statement 9M FY2024, page 20 ff. and 25 ff. 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: stabilus@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.