Q3 2025 Jost Werke SE Earnings Call Transcript
Key Points
- JOST Werke SE (XTER:JST) achieved a 56% increase in sales in Q3 2025, reaching EUR 383 million, supported by the Hyva merger and 10% organic growth across all regions.
- The company's adjusted EBIT grew by 40% to EUR 37 million, with an adjusted EBIT margin of 9.7%, demonstrating resilience in a challenging market environment.
- Free cash flow increased by 144% to EUR 56 million in Q3, driven by strong contributions from Hyva, improvements in working capital, and positive timing effects.
- The Hyva Group post-merger integration is on track, with synergies ramping up and new cross-selling opportunities identified, expected to generate EUR 20 million in positive impact by the end of 2026.
- JOST Werke SE (XTER:JST) confirmed its outlook for fiscal year 2025, expecting sales to increase by 40% to 50% and adjusted EBIT to rise by 23% to 28% compared to the previous year.
- The demand in the US market has been contracting due to tariff concerns, impacting the company's performance in the region.
- The equity ratio decreased from 40.4% at the end of last year to 21.3%, primarily due to the financing of the Hyva acquisition and currency translation effects.
- The company's leverage remains a concern, although it improved to 2.44 times EBITDA, it is still above the preferred range of 1 to 2 times.
- The effective tax rate is expected to be higher than initially anticipated, potentially reaching 28% to 30% for the full year, due to increased profitability in regions like APAC.
- The market environment remains fragile, particularly in the Americas and APAC regions, with ongoing uncertainties affecting production rates and market stability.
(technical difficulty) Yes. Thank you very much. A very good morning here from Neu-Isenburg, and a warm welcome to our Q3 earnings conference for JOST Werke SE. So I would like to start with the highlights of the first nine months and the third quarter of this year. In the third quarter, we were able to accelerate our profitable growth despite the challenging market environment.
This was supported by market share gains we had organic growth opportunities we could implement and of course, by the M&A of the Hyva Group. The Hyva Group PMI post-merger integration is fully on track. We see already a ramp-up of the synergies, and we advance further with new cross-selling opportunities that we have identified. We were able to obtain market share gains across all regions and in all business lines, and that is because we could successfully combine our local-for-local approach in operations, selling and production with the global strength of our business lines. The market demand in Europe, Middle East and Africa has
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