EQS News: EDAG Group solid in challenging market environment in first half of 2024 | 30.08.24

Press release

EDAG Engineering Group AG:
EDAG Group solid in challenging market environment in first half of 2024

• Sales growth of 1.8% to EUR 429.2 million in the first half of the year
• EBIT margin of 5.1% almost at last year’s level
• Significant increase in free cash flow to EUR 37.6 million

Arbon, August 30, 2024 EDAG, one of the leading independent engineering service providers to the global mobility industry and technology developer for industrial solutions, today published its report for the first half of 2024. In an increasingly challenging market environment in the automotive industry, EDAG was able to maintain its position well in the reporting period.

At Group level, sales of EUR 429.2 million were 1.8 percent above the previous year’s level of EUR 421.6 million. This growth was largely driven by developments in the Production Solutions segment, which saw sales increase by a whopping 26.3 percent. Vehicle Engineering was able to increase sales marginally. Electrics/Electronics was unable to maintain the positive development of the previous quarters and recorded a decline of 2.7 percent. This occurred in the context of lower demand from individual OEMs and Tier 1 suppliers, partly due to strategic reorientations in some areas in this segment.

At EUR 21.8 million, Group EBIT was below the previous year’s figure of EUR 24.9 million. Adjusted Group EBIT also amounted to EUR 21.8 million (previous year: EUR 23.5 million). The EBIT margin was 5.1 percent below the previous year’s figure of 5.9 percent; the adjusted EBIT margin was 5.1 percent (previous year: 5.6 percent). All three segments made a positive contribution to earnings in the first six months of the year. Given the challenges of the difficult market environment, performance in the first half of the year was satisfactory.

Order intake in the past half year amounted to EUR 481.0 million, which is slightly lower than the figure of EUR 502.3 million in the strong previous year. Operating cash flow increased by EUR 37.5 million to EUR 23.4 million (previous year: EUR -14.1 million) and free cash flow by EUR 37.6 million to EUR 11.2 million (previous year: EUR -26.4 million). As of June 30, the company had 9,051 employees worldwide (previous year: 8,596 employees).

For the financial year 2024, EDAG expects further growth and stable profit development. The forecast is accompanied by opportunities and risks that arise primarily from changes in market developments for our customers and thus for us. Geopolitical uncertainties, the development of wage costs and the sufficient availability of qualified personnel have further influence on this.

The forecasts for 2024 remain valid:
Revenue is expected to grow by about 4 to about 6 percent. Adjusted EBIT margin is expected to be in a range of about 5 to about 6 percent.
Due to the challenging market environment, both revenue and adjusted EBIT margin are expected to be at the lower end of the forecast.

About the EDAG Group

The EDAG Group is a world-leading, independent provider of technical services that combines excellent engineering with the latest technological trends.

With a global network of around 70 locations, the EDAG Group realizes projects in the segments of Vehicle Engineering, Electrics/Electronics and Production Solutions. With more than 50 years of experience in engineering, EDAG’s own 360-degree development approach has become a quality hallmark in the holistic development of vehicles and smart factories. The company’s interdisciplinary expertise in software and digitalization provides it with crucial skills to actively shape dynamic transformation processes as an innovative partner.

With an interdisciplinary team of around 9,000 experts, the EDAG Group develops unique mobility and industrial solutions for customers including the world’s leading automotive and non-automotive companies. The company has been listed on the stock exchange since 2015 and generated sales of €844 million in 2023.

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

Contacts:

Public Relations
Felix Schuster
Head of Marketing & Communications
Mobile: +49 (0) 173 – 7345473
E-mail: [email protected]
www.edag.com

Investor Relations
Christian Guard
Head of Investor Relations
Telephone: +49 (0) 611 – 7375 360
Mobile: +49 (0) 175 – 8020 226
E-mail: [email protected]
www.edag.com

Forward-looking statements

This press release contains forward-looking statements. These statements are based on current estimates and projections of the EDAG Executive Board and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based on assumptions about future events that may not prove to be accurate. Many factors could cause EDAG’s actual results, performance or achievements to differ materially from those expressed or implied by such statements. EDAG assumes no obligation to update the forward-looking statements contained in this press release.