Wacker Neuson Group publishes half-year report and confirms preliminary figures for the first half of 2024

Wacker Neuson Group publishes half-year report and confirms preliminary figures for the first half of 2024

• Revenue reaches EUR 1,204.8 million in H1/2024 (-11.8 percent year-on-year)
• H1/2024 EBIT margin at 7.0 percent (-5.9 percentage points year-on-year)
• Improvement of EBIT margin in second quarter of 2024 to 7.7 percent (1.5 percentage points increase over Q1/2024)
• Positive free cash flow in H1/2024 of EUR 4.5 million (H1/2023: EUR -30.5 million)
• Ongoing actions to reduce operating costs show positive impulses in second quarter
• Guidance for the full year already adjusted with publication of preliminary figures for the first half of the year

Munich, August 13, 2024 – Wacker Neuson Group, a leading manufacturer of light and compact equipment, published its consolidated financial report today, confirming the preliminary figures for the first half of 2024 published on July 17, 2024. As already communicated, the current overall market situation remains weak. Since the beginning of the year, the construction machinery industry has been characterized by low order intake and full dealer warehouses. The Wacker Neuson Group's results for the first half of the year reflect the current market situation. The revenue amounted to EUR 1,204.8 million, which corresponds to a decrease of 11.8 percent compared to the previous year
(H1/2023: EUR 1,365.9 million). The EBIT margin amounted to 7.0% in the first half of the year
(H1/2023: 12.9%), mainly due to volume effects. The increase in free cash flow, which among other things resulted from the reduction in inventories, was a particularly positive aspect.

Results for the first half year of 2024 in detail:

• All regions with declining revenues: Revenue in the Europe region (EMEA) fell by 9.6 percent to EUR 925.6 million (H1/2023: EUR 1,023.5 million). While revenue in Germany was down year-on-year, revenue in France was up year-on-year. Revenue in the Americas region fell by 16.7 percent to EUR 250.6 million (H1/2023: EUR 300.7 million). A decline in end customer demand was observed at both Wacker Neuson contracted and independent dealers as well as key accounts, which led to full inventories. The Asia-Pacific region declined by 31.4 percent in revenue or to EUR 28.6 million (H1/2023: EUR 41.7 million).
• EBIT margin up since Q4/2023, but below previous year: The EBIT margin has improved since the fourth quarter of 2023 and amounted to 7.7 percent in the second quarter of 2024. Looking at the first half of 2024, the EBIT margin fell by 5.9 percentage points year-on-year to 7.0 percent. The main driver of the year-on-year decline in EBIT margin was lower gross profit, which decreased due to volume effects. Compared to the previous year, it should also be noted that the result for H1/2023 included one-off other operating income of EUR 26.5 million. In absolute terms, EBIT in H1/2024 amounted to EUR 83.8 million (H1/2023: EUR 176.7 million).
• Weak demand impacts net working capital: As a result of the declining market demand in the first half of 2024 and the associated reduction in production volume at the Wacker Neuson Group's plants, net working capital increased by EUR 36.0 million or 4.1% to EUR 905.5 million as of June 30, 2024 (December 31, 2023: EUR 869.5 million). The net working capital ratio as of June 30, 2024 based on the annualized revenue for the second quarter of 2024 was 37.0%. The comparable figure as of June 30, 2023 based on annualized sales for the second quarter of 2023 was 31.6%. The higher annualized net working capital ratio compared to Q2/2023 is driven through an increase in receivables because of utilization of longer payment terms, declining trade payables due to lower purchasing volume of the plants and a lower revenue level.
• Positive free cash flow: After changes in net working capital and income taxes paid, cash flow from operating activities amounted to EUR 62.7 million in the first half of 2024 and was therefore up year-on-year (H1/2023: EUR 14.6 million). The main driver behind this improvement is the reduction in inventories in the first half of 2024, in contrast to an increase in inventories in the same period of the previous year. At EUR 4.5 million, free cash flow in the first half of 2024 was up year-on-year (H1/2023: EUR -30.5 million). At EUR 29.6 million, free cash flow in the second quarter of 2024 was also up year-on-year (Q2/2023: EUR -13.4 million). This was mainly driven by the higher cash flow from operating activities as a result of the reduction in inventories in the first half of 2024. Cash and cash equivalents amounted to EUR 29.9 million as of June 30, 2024 (December 31, 2023: EUR 27.8 million).

Guidance adjusted with publication of preliminary figures

In light of the weak market development, the Executive Board already adjusted the full-year 2024 guidance on July 17, 2024. The Wacker Neuson Group now expects revenue of EUR 2,300 to 2,400 million and an EBIT margin of 6.0 to 7.0 percent. Investments for the full year are now expected to amount to around EUR 100 million. The net working capital ratio at the end of the year is now expected to be around 34 percent. The forecast reflects business development in the first half of 2024 and also takes into account possible changes in the economic environment over the rest of the year.

Key figures of Wacker Neuson Group

¹ Prior year includes a one-off income totaling EUR 26.5 million
 

Management call and webcast

A management call and webcast for institutional investors, analysts and members of the press is scheduled for August 13, 2024 at 1:00 p.m. CEST to present the H1/2024 results, followed by a Q&A session.

Registration for the event is possible after contacting ir@wackerneuson.com.

A replay will be available later on the Wacker Neuson Group website.

Contact:

Wacker Neuson SE

Peer Schlinkmann

Investor Relations

Preussenstrasse 41

80809 Munich, Germany

Tel. +49-(0)89-35402-1823

ir@wackerneuson.com

www.wackerneusongroup.com

The Wacker Neuson Group's complete half-year report 2024 is available at the following link: https://wackerneusongroup.com/investor-relations

For press images relating to the Wacker Neuson Group, please see
https://wackerneusongroup.com/konzern/pressemeldungen

About the Wacker Neuson Group:

The Wacker Neuson Group is an international network of companies, employing around 6,300 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.