Yahoo Finance

• Revenue: EUR2.235 billion, a 16% decline year on year.

• EBIT: EUR122.5 million, with an EBIT margin of 5.5% for 2024.

• Fourth Quarter Revenue: EUR513 million, relatively flat compared to the third quarter.

• Fourth Quarter EBIT Margin: Fell from 4.8% to 2.7% due to restructuring costs and higher R&D expenses.

• Net Working Capital Ratio: 31.7%, below the forecasted 34%.

• Free Cash Flow: Increased from EUR91.5 million in Q3 to EUR185 million by year-end.

• Regional Revenue - Europe: EUR1.732 billion, a 14% decline.

• Regional Revenue - Americas: EUR451 million, a 19% decline.

• Regional Revenue - Asia Pacific: EUR53 million, a 31% decline.

• Service Business Revenue: Grew by 4%, accounting for 23% of total revenue.

• Net Debt: EUR311 million, with a leverage ratio of 1.1.

• Equity Ratio: 60%.

• Proposed Dividend: EUR0.60 per share, with a payout ratio of 58% of earnings per share.

• 2025 Revenue Guidance: EUR2.1 billion to EUR2.3 billion.

• 2025 EBIT Margin Guidance: 6.5% to 7.5%.

• 2025 Net Working Capital Ratio Target: Around 30%.

• 2025 Investment Plan: Approximately EUR100 million.

• Warning! GuruFocus has detected 8 Warning Sign with WKRCF.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wacker Neuson SE (WKRCF) successfully reduced its net working capital ratio to 31.7%, below the forecasted 34%, due to significant inventory reductions.

• The company doubled its free cash flow in the fourth quarter, reaching EUR185 million by year-end.

• Despite challenging market conditions, the service business, including rental, spare parts, maintenance, and repair services, grew by 4% year on year.

• The company has set and achieved a 66% reduction in its Scope 1 and Scope 2 CO2 emissions, surpassing its 50% target.

• Wacker Neuson SE (WKRCF) is rolling out a new app to enhance customer experience by providing easy access to machine-specific data and support resources.

Negative Points

• Revenue for the fiscal year 2024 declined by approximately 16% year on year, primarily due to weak market demands and excessive dealer stock.

• The EBIT margin fell to 2.7% in the fourth quarter, impacted by one-time restructuring costs and higher R&D expenses.

• The Americas region saw a significant revenue decline of 19%, with challenges in the US, Canada, and Latin America.

• The Asia Pacific region experienced a 31% drop in revenue, driven by decreased demand in Australia and China.

• The first quarter of 2025 is expected to remain weak, with improvements anticipated only from the second quarter onwards.