Q3 2025 Stabilus SE Earnings Call Transcript
Key Points
- Stabilus SE (SIUAF) maintained an EBIT margin of 11.1% year-to-date, consistent with the previous year, despite a challenging market environment.
- The company successfully refinanced its term loan ahead of schedule, securing a new long-term loan facility of EUR 150 million maturing in June 2029.
- Stabilus SE (SIUAF) increased its covenant headroom to 4.0 until September 2026, indicating strong financial stability and trust from banks.
- The company expects a free cash flow of EUR 105 million for the year, with a cash flow ratio exceeding 50%, demonstrating strong cash generation capabilities.
- Stabilus SE (SIUAF) is implementing cost-cutting measures across various areas, including purchasing savings and operational efficiencies, to maintain profitability in a soft market.
- Revenues in the third quarter were down by 10%, primarily due to a strong euro and the global tariff conflict, impacting sales in North America and Asia Pacific.
- The company experienced a significant FX impact, with the euro's strength affecting revenues in North America and China.
- Sales in the Americas and Asia Pacific regions declined by 12% and 21%, respectively, due to softer demand in the automotive and industrial sectors.
- The Asia Pacific Powerise segment saw a 15% decline in organic revenues, with pricing pressures and competition in China contributing to the decrease.
- Stabilus SE (SIUAF) anticipates continued pricing pressure in China, with prices expected to decrease by another 3% to 4% next year.
Yeah, hello, and welcome to our quarter three call today. You have Andreas Schröder, our Investor Relations Vice President online. And for sure also myself, Michael Buchsner the CEO of the Stabilus Group.
To summarize the presentation, we are holding course in a soft market environment. I would say that summarizes the current situation. We are stabilizing our profits. We are at 11.1% EBIT margin year-to-date, and this is basically in the same ballpark than last year in terms of the nine months view. For sure, there are some impacting factors we will talk about today, current market environment, that's not a secret, is rather soft in all industries.
We see a secondary impact by the global tariff conflict which at the end of the day, materialize in terms of software sales around the globe, but predominantly in North America and also Asia Pacific. On top of that, for sure, driven by the strong euro, there is some negative FX impact around the globe, particularly in North America and also in China.
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