- Revenue: EUR 822 million, a decline of 2.6%.
- Order Intake: Dropped by EUR 94 million to EUR 767.9 million.
- Vehicle Engineering Revenue: Declined by 2.3%.
- Electric Electronics Revenue: Dropped by 9.2%.
- Production Solution Revenue: Grew by 60%, increasing its contribution to total revenues from 13.2% to 15.7%.
- Adjusted EBIT: EUR 31.1 million, a decrease of EUR 21.5 million.
- Adjusted EBIT Margin: 3.8%.
- Vehicle Engineering Adjusted EBIT: Dropped to EUR 24 million from EUR 34.7 million in 2023.
- Electric Electronics Adjusted EBIT: Decreased from EUR 15.3 million to EUR 1.6 million, with a margin of 0.7%.
- Production Solution Adjusted EBIT: Increased from EUR 2.6 million to EUR 5.5 million, with a margin increase from 2.3% to 4.2%.
- Headcount: Increased by 2.8% to 9,133.
- Earnings After Tax: Loss of EUR 14.4 million.
- Loss Per Share: EUR 4.57.
- CapEx: EUR 22.9 million, with a CapEx ratio of 2.8%.
- Equity: Decreased by EUR 29.5 million to EUR 133.1 million.
- Equity Ratio: 18.1%.
- Trade Working Capital: EUR 93.5 million, EUR 45.7 million lower than last year.
- Operating Cash Flow: Increased by EUR 53.4 million.
- Free Cash Flow: Increased by EUR 59.2 million.
- Net Financial Debt: EUR 219.7 million, with a net gearing of 165.1%.
- Net Financial Debt without Leasing: EUR 33.2 million, with a net gearing of 25%.
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EDAG Engineering Group AG (XTER:ED4, Financial) successfully opened three new facilities in 2024, including the Zero Prototype lab, EMC Competence Center, and Light Laboratory, enhancing their capabilities in vehicle dynamics simulation, electromagnetic compatibility, and lighting solutions.
- The company reported a significant growth of over 30% in sales from non-automotive industries, reaching approximately EUR80 million, indicating successful diversification efforts.
- EDAG's production solution segment demonstrated robust growth of 60%, contributing to an increased share of total revenues and highlighting successful diversification into the industrial sector.
- The company has strategically expanded its workforce in best cost countries like India and China, enhancing competitiveness and cost efficiency.
- EDAG's focus on digitalization and AI-powered development processes is expected to reduce development times and improve operational efficiency, providing a competitive advantage in the mobility industry.
Negative Points
- EDAG Engineering Group AG (XTER:ED4) experienced a revenue decline of 2.6% in 2024, primarily due to fewer call-ups under framework agreements and project postponements.
- The company's adjusted EBIT dropped significantly by EUR21.5 million, resulting in a lower margin of 3.8%, reflecting challenging market conditions.
- The vehicle engineering and electric electronics segments faced revenue declines of 2.3% and 9.2%, respectively, due to restructuring and cost-cutting programs by OEMs and Tier 1 suppliers.
- EDAG reported a loss after tax of EUR14.4 million, attributed to restructuring costs, higher financing costs, and lower average revenues.
- The company anticipates further challenges in 2025, with expected revenue declines of up to 8% and ongoing market dynamics and geopolitical uncertainties impacting business performance.
Q & A Highlights
Q: Can you provide insights into the impressive 30% revenue growth in the non-automotive sector and its distribution across segments?
A: The growth in the non-automotive sector is primarily driven by our production solutions segment, which accounts for approximately 65% to 70% of this growth. This segment's expertise in engineering and manufacturing for the automotive industry is easily transferable to other industries.
Q: How is the development of employee numbers progressing, particularly in terms of reducing the workforce in Germany and increasing it in other countries?
A: We have increased our headcount in Asia, especially in India and China, due to competitive rates and project demands. In Germany, we have reduced the workforce by not replacing natural attrition. The impact of our social plan will be more visible later as we have started concrete redundancies.
Q: Are there any anticipated additional restructuring expenses, and what might trigger them?
A: It's challenging to predict future restructuring expenses as they depend on order intake and market conditions. While we do not currently foresee the need for further restructuring, we cannot rule it out if market conditions worsen.
Q: What is the outlook for profits and revenues in the current year, particularly for the first quarter?
A: The first quarter and first half of 2025 will be challenging, with expected deviations from the previous year's performance. However, we are optimistic about achieving positive results, depending on market developments and opportunities with OEMs and other industries.
Q: There was a significant increase in material costs in the fourth quarter. Is there anything specific to note about this?
A: The increase in material costs in the fourth quarter was due to receiving invoices from suppliers. There is nothing extraordinary to report; it was part of ordinary business operations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
