EQS-News: Stabilus SE increases revenue and result in Q1 FY2025

CORPORATE NEWS

Stabilus SE increases revenue and result in Q1 FY2025

• Revenue increases by 6.7% to €326.0 million in Q1 FY2025, due to consolidation of Destaco

• Adjusted EBIT^[1] in Q1 at €37.8 million compared to €33.3 million in Q1 FY2024, corresponding to a margin of 11.6% (Q1 FY2024: 10.9%)

• Q1 result at €14.3 million (Q1 FY2024: €12.2 million) and adjusted FCF^[1] of €8.9 million (Q1 FY2024: €36.2 million)

• The integration of Destaco continues to be fully on track

• Forecast confirmed for fiscal 2025 with revenue of €1.3 billion to €1.45 billion, an adjusted EBIT margin in the range of 11% and 13% and an adjusted FCF of €90 million to €140 million

Koblenz, January 27, 2025 - Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8), one of the world's leading suppliers of motion control solutions for a wide range of industries, once again benefitted from the diversification of its business through the acquisition of Destaco in the first quarter of fiscal 2025 (ended December 31, 2024). The revenue and earnings contribution of Destaco, as well as growth in the Distributors, Independent Aftermarket, E-commerce (DIAMEC) market segment, were key contributors to the increase. From a regional perspective, the Americas and EMEA regions showed growth, whereas APAC declined mainly due to a weak automotive market.

In the first quarter of fiscal 2025, Stabilus recorded group revenue of €326.0 million (Q1 FY2024: €305.4 million), corresponding to year-on-year revenue growth of 6.7%. The consolidation of Destaco was a key growth driver, while Stabilus saw an organic decline of 5.8%.

Dr. Michael Büchsner, CEO of Stabilus, said: "The challenging market environment that prevailed in the past fiscal year continues in many of our target industries, especially in the automotive sector. In the first quarter of our 2025 fiscal year, this is particularly evident in the APAC region. A shift in the product mix, which is partly a consequence of the current weakness in demand for premium vehicles and thus for comfort enhancing features, is having a negative impact. Given this situation, the strengthening of our industrial business through the acquisition of Destaco is once again proving to be an important factor for the stability of Stabilus."

Stefan Bauerreis, CFO of Stabilus, added: "Despite the difficult market environment, the development of the first quarter is in line with our expectations. In the second half of our fiscal year, we expect a stronger development, which is taken into account in our forecast for the fiscal year. We kept our net leverage ratio stable in the first quarter. This was achieved despite the fact that adjusted free cash flow was impacted by the partial reversal of positive one-off effects that occurred at the end of fiscal 2024. We are making a sustained effort to continuously reduce the net leverage ratio in the coming quarters."

Revenue growth in the Americas and EMEA in Q1 FY2025

In the Americas region, Stabilus recorded a 14.7% increase in revenue to €113.7 million (Q1 FY2024: €99.1 million) in Q1 FY2025, which resulted in particular from the consolidation of Destaco. In addition, Stabilus achieved growth in the region in the DIAMEC, AMR and EC market segments. In the EMEA region, revenue increased by 6.1% to €125.4 million in Q1 FY2025 (Q1 FY2024: €118.2 million), which was also mainly due to the consolidation of Destaco as well as growth in the DIAMEC market segment. In the Asia-Pacific (APAC) region, revenue declined by 1.4% year-on-year to €86.9 million (Q1 FY2024: €88.1 million), which is mainly due to the currently weak automotive market in the region.

Automotive division suffers from global market weakness

In terms of business units, Stabilus recorded a revenue decline of 15.3% to €100.5 million in Automotive Powerise in Q1 FY2025 (Q1 FY2024: €118.7 million) and a decline of 5.7% to €84.3 million (Q1 FY2024: €89.4 million) in Automotive Gas Spring. The Industrial Components business unit recorded a revenue decline of 1.1% to €96.2 million in Q1 FY2025 (Q1 FY 2024: €97.3 million). The Industrial Automation business unit, which includes Destaco, generated revenue of €45.0 million in Q1 FY2025.

Broken down by market segment, Stabilus saw strong revenue growth in Industrial Machinery & Automation, which benefited from the consolidation of Destaco, as well as growth in the market segment Distributors, Independent Aftermarket, E-commerce (DIAMEC), while the Energy & Construction (EC) market segment stagnated. In the other market segments, such as Health, Recreation & Furniture (HRF) and Automotive (AGS and APR), there were declines in revenue in Q1 FY2025.

Adjusted EBIT margin of 11.6% in first quarter 2025

Adjusted operating profit (adjusted EBIT^[1]) amounted to €37.8 million in Q1 FY2025, up 13.5% year-on-year (Q1 FY2024: €33.3 million). This corresponds to an adjusted EBIT margin of 11.6% (Q1 FY2024: 10.9%).

In Q1 FY2025, profit was €14.3 million, compared to €12.2 million in the same period of the previous year, and adjusted FCF^[1] was €8.9 million (Q1 FY2024: €36.2 million). The decline of adjusted FCF is due to the already communicated partial reversal of the positive effects in the fourth quarter of FY2024 and a temporary increase in net working capital, particularly inventories. Stabilus expects a prompt normalization of the inventory level.

Forecast for fiscal 2025 confirmed

Stabilus confirms its forecast for the full fiscal year 2025 and continues to expect revenue of €1.3 billion to €1.45 billion, an adjusted EBIT^[1] margin in the range of 11% to 13% as well as an adjusted FCF^[1] of €90 million to €140 million.

The quarterly statement for the first quarter of fiscal 2025 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 our Quarterly Statement Q1 FY2025, pages 14 and 17, 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 for a wide range of industries including mobility, industrial machinery, automation, energy, construction, health, leisure and furniture. Stabilus offers reliable and innovative solutions that enable, enhance and automate precise movement, positioning, opening, closing, lifting, lowering and adjusting actions. The Group, which has its headquarters in Koblenz, has a global production and distribution network with eight thousand employees worldwide and generated revenues of €1.3 billion in the 2024 fiscal year. Stabilus SE is listed in the Prime Standard segment of the Frankfurt Stock Exchange and is included in the SDAX index. For more information, see group.stabilus.com and ir.stabilus.com.

Important Notice

This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. 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.