EQS-News: STS Group AG increases profitability in a challenging market environment

STS Group AG increases profitability in a challenging market environment

• Margin expansion with almost stable sales revenue despite weaker truck markets and delays in revenue recognition in the US
• Sales revenue of 207.0 mEUR, down 1.5 % year-on-year (9M/2023: 210.2 mEUR)
• EBITDA rises by 14.2% to 16.8 mEUR (9M/2023: 14.7 mEUR)
• EBITDA margin improves to 8.1% (9M/2023: 7.0%)
• Full-year targets confirmed

Hagen, 29 November 2024 – STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, announces key figures for the first nine months of the 2024 financial year.

Alberto Buniato, CEO of STS Group AG: "The normalization of the truck markets continues. We see declining sales or new registration figures in China, the EU and the US in the third quarter as well as in the entire nine-month period of 2024. In this more difficult market environment, we at STS Group have demonstrated stability and remain on track to achieve our annual targets. The ramp-up of series production at the new US plant is progressing according to plan. We are still confident to achieve our sales guidance, as we have positive catch-up effects from our business in US which will realize in the last quarter of the year. Profitability continues to develop encouragingly, particularly due to the optimization and restructuring measures we have completed last year, with the result that the EBITDA margin has improved further even compared to the half-year figure."

Sales revenue development

In the period from 1 January to 30 September 2024, STS Group AG generated sales revenue of 207.0 mEUR, compared with 210.2 mEUR in the same period of the previous year. The Plastics segment performed in line with the market development, with only slight sales revenue growth of 1.0%. Among other things, the segment benefited from higher tool sales in connection with new customer projects. The China and Materials segments both recorded sales revenue declines of 5.8% and 7.1% respectively compared to the same period of the previous year. These figures were particularly affected by weaker market development in China and Europe. With the China segment having performed better then market development with only a slight decrease compared to last year, mainly due to the start of production of new projects. Nevertheless, at the end of the third quarter the decline in the Chinese market started to slow down.

Earnings development

The earnings situation of STS Group AG continued to develop positively. Due to the positive earnings contributions of all three segments, earnings before interest, taxes, depreciation and amortization (EBITDA), which also corresponds to adjusted EBITDA, increased by 2.1 mEUR to 16.8 mEUR in the nine-month period, compared to 14.7 mEUR in the same period of the previous year. Despite the decline in sales revenue, this represents an increase in earnings of 14.2%. As a result, the EBITDA margin of the STS Group also improved to 8.1% compared to 7.0% in the same period of the previous year. This development was the result of operational optimization implemented globally in all plants, as also the pay back of the restructuring measures completed in France in the previous year 2023.

Guidance for 2024 confirmed

STS Group maintained a robust business performance in the first nine months of 2024, in line with its own expectations. Despite the observed weakening in regional truck markets and ongoing geopolitical uncertainties, the Executive Board reaffirms its guidance for the 2024 financial year. Accordingly, STS Group is expected to achieve sales revenue growth in the high single-digit percentage range and an EBITDA margin in the high single-digit percentage range.

Key figures for the first nine months of 2024

About STS Group:

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading systems supplier for the automotive industry. The group of companies employs 1,300 people worldwide and generated sales of EUR 277.9 million in the 2023 financial year. At its twelve plants and three development centers in France, Germany, Mexico, China and, in future, the USA, STS Group ("STS") produces and develops injection-molded plastics and components made from sheet molding compounds (SMC), such as rigid and flexible vehicle and aerodynamic trim, holistic interior systems, as well as lightweight and battery components for electric vehicles. STS is a technological leader in the production of plastic injection molding and composite components. STS has a large global footprint with plants on three continents. The customer portfolio includes leading international manufacturers of commercial vehicles, passenger cars and electric vehicles.
 

STS Group AG
Investor Relations
Kabeler Str. 4
58099 Hagen
Germany
ir@sts.group
www.sts.group

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