EQS-News: EDAG Engineering Group AG: Revenues and adjusted EBIT stabilized in a challenging market environment in the 2024 financial year

       Press Information

EDAG Engineering Group AG:
Revenues and adjusted EBIT stabilized in a challenging market environment in the 2024 financial year

• Revenues at € 822.0 million
• Adjusted EBIT at € 31.1 million
• Increase of free cash flow to € 70.1 million
• Restructuring measures impact earnings by € 34.5 million
• 30% growth in other industries to approx. € 80 million

Arbon, March 27, 2025 The EDAG Group, one of the largest independent engineering service providers to the automotive industry, with experts in mobility, industry and public solutions, published today its report for the 2024 financial year. By taking systematic countermeasures, the EDAG Group was able to counter the decline in sales in the automotive industry and the resultant project postponements and cancellations, all of which led to a downward trend in key figures.

The difficult market conditions were reflected in incoming orders, which totaled € 767.9 million in the reporting period (previous year: € 861.9 million). At € 822.0 million, the group's revenues are 2.6 percent below the previous year's figure of € 844.3 million. Due to the current market situation, the Vehicle Engineering and Electrics/Electronics segments were unable to continue the growth seen in previous years. Revenues decreased by 2.3 percent in our largest segment, Vehicle Engineering, and by 9.2 percent in the Electric/Electronics segment. Production Solutions continued its growth path by diversifying into other industries, generating a 16.0 percent increase in revenues.

The adjusted Group EBIT stands at € 31.1 million (previous year: € 52.6 million). This is equivalent to an adjusted EBIT of 3.8 percent (previous year: 6.2 percent). The EBIT of € -3.4 million (previous year: € 53.9 million) includes restructuring measures in the amount of € 34.5 million. For the same reason, and due to higher financing expenses, earnings after taxes in the 2024 financial year amounted to € -14.4 million, and were therefore below the previous year's level of € 28.9 million. The purpose of the restructuring measures implemented is to optimize the cost structure in the short term, and to improve future performance.

There was a significant increase in the free cash flow, which amounted to € 70.1 million for the year as a whole (previous year: € 10.9 million). On December 31, 2024, the EDAG Group employed a worldwide workforce of 9,133 (previous year: 8,880).

"The automotive industry is facing far-reaching changes. To provide our customers with the best possible support in these dynamic times, we at EDAG are consistently driving innovation and increasing efficiency using forward-looking technologies. Particularly when it comes to reducing development times, we have demonstrated what potential there is in the optimal integration of virtual and AI-based development tools," explains CEO Harald Keller.

"In the 2024 financial year, the EDAG Group adapted its strategic and operational focus to meet the challenges of the market. In the medium term, our aim is to return to EBIT margins in the range of five to eight percent," says CFO Holger Merz. "On the cost side, our global delivery approach, i.e. the continuing expansion of our resources in best-cost countries, and on the revenue side, the strengthening of further industrial sectors such as semiconductors, chemicals, defence and medical devices, will help us to achieve this."

The EDAG Group anticipates further challenges in the 2025 financial year, which will also be reflected in earnings performance. For this reason, it is assumed that revenues and the adjusted EBIT will decline in the first half of 2025. The market is not expected to recover to any great extent until the second half of the year.

The forecast is associated not only with opportunities, but also with risks. For our customers, and consequently for us, these arise primarily as a result of ongoing market dynamics and geopolitical uncertainties.

• A decline of up to approx. 8 percent is expected in revenues.
• The adjusted EBIT margin is expected at a positive level up to approx. 3 percent.
• The investment rate is expected to be in the range of approx. 3 percent.

In view of the continuing uncertainties in the automotive industry, the Board of Directors will, at the annual shareholder's meeting on June 25, 2025, propose that no dividend be paid for 2024.

Selected financial figures for the 2024 financial year

About the EDAG Group

The EDAG Group is a globally leading, independent engineering service provider to the mobility industry, with experts in mobility, industry and public solutions, that combines excellent engineering with the latest technology trends.

With an interdisciplinary team of some 9,000 experts, the EDAG Group, in its global network spanning approximately 70 sites, realizes projects for the automotive industry and other industrial sectors including semiconductors, chemicals, defence and medical devices. With over 55 years of engineering experience and its own 360-degree development approach, the EDAG Group covers the entire spectrum of modern mobility, combining innovative technologies and future-oriented concepts. Working across all industries, the EDAG Group develops products and production plants and facilities that take all manufacturing-relevant processes into full account and integrate them into a holistic network. Innovative strategies, data networking and a digital infrastructure are also at the center of the company's cross-industry engineering solutions, for the public sector, for example. The interdisciplinary approach and a strong partner network provide an optimal customer experience for a customer base of global market leaders.

The company has been listed on the stock exchange since 2015 and generated sales of € 822 million in 2024.

For more information, see the EDAG Group website: www.edag.com

Press contacts:

Public relations
Felix Schuster 
Head of Marketing & Communications  
Mobile:    +49 (0) 173 - 7345473 
Email:      pr@edag.com
www.edag.com

Investor Relations
Christian Schütze 
Head of Investor Relations  
Tel.:  +49 (0) 611- 7375 360 
Mobile:     +49 (0) 175- 8020 226
Email:        ir@edag-group.ag
www.edag.com

Predictive statements and forecasts

This communication contains predictive statements. These statements are based on current estimates and forecasts made by EDAG Group Management and the information currently available to its members. The predictive statements given here are not to be regarded as guarantees for future developments and results mentioned therein. The future performance and results will in fact depend on a number of factors; they involve various risks and uncertainties, and are based on assumptions which may prove to be incorrect. EDAG undertakes no obligation to update the predictive statements made in this communication.