Stabilus SE closes Q2 FY2024 with a slight increase in revenue

EQS-News: Stabilus SE / Key word(s): Quarter Results
Stabilus SE closes Q2 FY2024 with a slight increase in revenue

08.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

CORPORATE NEWS

Stabilus SE closes Q2 FY2024 with a slight increase in revenue

  * Revenue increases by 0.9% to EUR313.5 million in Q2 FY2024 despite
    challenging environment, APAC region primary growth driver

  * Adjusted EBIT(1) in Q2 at EUR38.9 million compared to EUR40.8 million in Q2
    FY2023, corresponding to a margin of 12.4% (Q2 FY2023: 13.1%)

  * Q2 result at EUR18.1 million (Q2 FY2023: EUR42.6 million); Prior-year
    quarter impacted by significant positive tax effect

* Adjusted FCF(1) of EUR3.7 million (Q2 FY2023: EUR12.1 million)

  * Forecast for fiscal 2024 further specified to the lower end of the
    expected range of EUR1.4 billion to EUR1.5 billion for revenue and 13% to
    14% for the adjusted EBIT margin(1) ; Catch-up effect expected in the
    second half of the year

  * Acquisition of DESTACO successfully completed; Initial consolidation as
    of March 31, 2024

Koblenz, May 8, 2024 - Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8), one of
the world's leading suppliers of motion control solutions for a wide range
of industries, closed the second quarter of fiscal 2024 ended March 31, 2024
with slight revenue growth in a challenging market environment. The positive
development in the Asia-Pacific region (+12.1% revenue growth) and the
stable development in the EMEA region (+0.2%) more than offset the weak
demand in the Americas region (-4.1%). The Automotive (especially Automotive
Powerise), Aerospace, Marine & Rail (AMR) and Health, Recreation & Furniture
(HRF) segments were particularly strong.

Group revenue in the second quarter of FY2024 increased by 0.9% to EUR313.5
million compared to the same quarter of the previous year (Q2 FY2023: EUR310.6
million).

As of March 31, 2024, Stabilus has successfully completed the acquisition of
industrial automation specialist DESTACO and included the company in the
scope of consolidation. From the beginning of the third quarter of 2024,
DESTACO will thus contribute to the Stabilus Group's revenue and earnings.
In 2023, DESTACO generated revenues of US$206 million with an adjusted EBIT
margin of 20%.

Dr. Michael Büchsner, CEO of Stabilus, said: "The revenue growth in a
persistently difficult market environment is primarily due to our
diversification, both regionally and with regard to the large number of
industries in which our motion control products are used. For example, we
are encouraged by sales of our DA90 door actuator for the powered opening
and closing of car doors, of which we have sold a record number of more than
110,000 units in the past six months. At the same time, we are already
laying the foundation for the cooperation and strategic development of the
Stabilus Group with several meetings of the Stabilus and DESTACO management
teams in the USA, Germany, India and China over the past few days. I was
very impressed by the motivation and innovative spirit of the employees at
DESTACO."

Stefan Bauerreis, CFO of Stabilus, added: "As in previous years, we expect
stronger demand in the third and fourth quarters of the current fiscal year,
which makes us confident that we will achieve our specified full-year
forecast. Over the next two to three years, we plan to reduce our net
leverage ratio, which has risen to 2.8 as a result of the acquisition of
DESTACO, back to below 2.0 based on the anticipated positive development of
the company."

APAC and EMEA drive revenue growth in Q2 FY2024

In the EMEA region, revenue increased by 0.2% to EUR137.5 million in Q2 FY2024
(Q2 FY2023: EUR137.2 million). In particular, the Aerospace, Marine & Rail
(AMR) segment has stood out in this region with strong growth. In the
Asia-Pacific (APAC) region, the company recorded a year-on-year revenue
increase of 12.1% to EUR66.7 million (Q2 FY2023: EUR59.5 million), mainly due to
a very good performance in the Automotive segments, especially Powerise,
Industrial Machinery & Automation (IMA) and Distributors, Independent
Aftermarket, E-Commerce (DIAMEC). Demand in the Americas region remains
below the previous year's level, despite a rebound in business, which led to
a 4.1% decline in revenue to EUR109.3 million in the quarter (Q2 FY2023:
EUR114.0 million). Positive growth impetus in this region came from the
Health, Recreation & Furniture (HRF), Commercial Vehicles (CV) and
Automotive segments.

Broken down by market segment, Stabilus achieved growth in Aerospace, Marine
& Rail (+66% y/y), Health, Recreation & Furniture (+6% y/y) and Automotive
(+5% y/y).

Adjusted EBIT margin of 12.4% in second quarter 2024

Adjusted operating profit (adjusted EBIT(1)) decreased by 4.7% to EUR38.9
million in Q2 FY2024 (Q2 FY2023: EUR40.8 million). This corresponds to an
adjusted EBIT margin of 12.4% compared to 13.1% in Q2 FY2023. The main
reasons for this development continued to be high material procurement costs
and increased personnel costs.

In Q2 FY2024, profit was EUR18.1 million (Q2 FY2023: EUR42.6 million), with
profit in the prior-year quarter positively impacted by a one-off tax refund
for fiscal years 2010 to 2014. Free cash flow before acquisitions (adj.
FCF(1))
was EUR3.7 million compared to EUR12.1 million in Q2 FY2023.

Forecast for fiscal 2024 further specified to the lower end of the expected
range

Due to the challenging environment, Stabilus further specifies its forecast
for fiscal 2024 at the lower end of the expected range of EUR1.4 billion to
EUR1.5 billion for revenue and 13% to 14% for the adjusted EBIT(1) margin. As
in previous financial years, Stabilus expects a stronger business
development in the third and fourth quarters of the fiscal year.

The interim report for the first half and the second quarter of fiscal 2024
can be downloaded on the company's website at ir.stabilus.com.

________________________

(1) Cf. definition/calculation of KPI's adjusted EBIT and adjusted FCF in
our Interim Report H1 FY2024, pages 20 and 25, that can be downloaded from
the company's website at ir.stabilus.com.

Investor contact:
Andreas Schröder
Tel.: +49 261 8900 8198
E-Mail: anschroeder@stabilus.com
Web: ir.stabilus.com

Press contact:
Peter Steiner
Tel.: +49 69 794090 27
E-Mail: Peter.Steiner@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

Stabilus is one of the world's leading providers of motion control solutions
across a broad spectrum of industries including mobility, industrial
machinery, automation, energy, construction, health, recreation and
furniture. Stabilus offers reliable and innovative solutions that enable,
enhance and automate precise movement, positioning, opening, closing,
lifting, lowering and adjusting actions. With its operational headquarters
in Koblenz, Germany, the Stabilus Group has a global production and sales
network with more than eight thousand employees and reported revenue of EUR1.2
billion in the 2023 fiscal year. Stabilus SE is listed in the Prime Standard
segment of the Frankfurt Stock Exchange and is included in the MDAX index.
Further information is available at group.stabilus.com and ir.stabilus.com.

Important Notice

This press release may contain certain forward-looking statements based on
current assumptions and forecasts made by Stabilus Group management and
other information currently available. Various known and unknown risks,
uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance
of the company and the estimates given here.


---------------------------------------------------------------------------

08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

---------------------------------------------------------------------------

   Language:       English
   Company:        Stabilus SE
                   Wallersheimer Weg 100
                   56070 Koblenz
                   Germany
   Phone:          +49 261 8900 0
   E-mail:         investors@stabilus.com
   Internet:       group.stabilus.com
   ISIN:           DE000STAB1L8
   WKN:            STAB1L
   Indices:        MDAX
   Listed:         Regulated Market in Frankfurt; Regulated Unofficial
                   Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich,
                   Stuttgart, Tradegate Exchange
   EQS News ID:    1898011

End of News EQS News Service
---------------------------------------------------------------------------

1898011 08.05.2024 CET/CEST