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Engineering services provider Bertrandt (ETR:BDTG) (ETR:BDT) reported a sharp decline in revenue and deepening losses in its Q3 2024/2025 presentation on August 4, 2025, as the company continues to face significant headwinds from the automotive industry slowdown and broader economic challenges.
Introduction & Market Context
Bertrandt’s management highlighted a challenging market environment impacted by trade disputes, geopolitical tensions, and weak economic conditions in Germany. The automotive industry, which represents 87% of the company’s business, has been particularly affected by tariffs, slowing unit sales, and customer-specific challenges, leading to negative sentiment and numerous project postponements.
As shown in the following slide detailing the market environment, the company is facing multiple external pressures while implementing internal measures to address these challenges:
The presentation specifically highlighted examples of project postponements affecting major automotive clients, including Audi, Porsche, Bentley, and Lamborghini, due to software issues, platform delays, and other challenges.
Quarterly Performance Highlights
Bertrandt’s Q3 2024/2025 results showed significant deterioration compared to both the previous quarter and the same period last year. Total (EPA:TTEF) sales fell to €226 million, representing a 10% decline quarter-over-quarter and a steep 23% drop year-over-year. EBIT worsened to -€25 million, compared to -€7 million in Q3 2023/2024.
The following slide details the key financial metrics for the quarter:
For the first nine months of fiscal year 2024/2025, the company reported total sales of €742 million, down 19% year-over-year, with an EBIT of -€39 million compared to a positive €15 million in the same period last year. The employee count decreased by 12% year-over-year to 12,672.
Management attributed the revenue decline to lower capacity call-offs from clients, with a high prior-year base, capacity reduction, short-time work, reduced external services, underutilization, and fewer working days all contributing to the negative performance.
Segment Performance and Diversification Strategy
All three of Bertrandt’s business segments – Digital Engineering, Physical Engineering, and Electric/Electronic – showed declining revenues, though with varying degrees of impact. The company is actively pursuing a diversification strategy to reduce its dependence on the automotive sector, with a target to decrease automotive revenue from the current 87% to 75% by 2027, while increasing Aerospace/Defence from 7% to 10% and other sectors from 6% to 15%.
The following slide illustrates this diversification strategy:
Strategic Initiatives
Bertrandt is implementing a comprehensive cost-saving program called F3, which includes redundancy measures, infrastructure optimization, and structural cost reductions. The program targets €70-90 million in savings and includes site closures that have already reduced space by 26,000 square meters.
The company has also implemented additional measures affecting administrative and leadership positions, including the elimination of one hierarchical level. Despite these measures, EBIT has been negatively impacted by special items and one-offs totaling €12.7 million in the first nine months of 2024/2025.
The following slide shows the P&L key performance indicators, highlighting the cost optimization efforts:
Despite operational challenges, Bertrandt maintains a solid balance sheet with an equity ratio of 41.5%, as shown in the following slide:
Forward-Looking Statements
Management has revised its forecast for fiscal year 2024/2025, projecting significantly lower revenues year-over-year compared to the €1.187 billion reported in FY 2023/2024. While EBIT is expected to be significantly up compared to the -€98 million reported last year, the company remains uncertain about achieving a positive value.
For FY 2025/2026, Bertrandt is targeting an EBIT margin of 6-9%, based on the expected €70-90 million in savings from the F3 program. Management expects business to normalize within the second half of 2025, though this outlook remains subject to considerable uncertainty.
Conclusion
Bertrandt faces significant challenges as it navigates a difficult period for the automotive industry, which still represents the vast majority of its business. The company’s Q3 2024/2025 results reflect these headwinds, with substantial declines in revenue and deepening losses.
However, management is actively implementing cost-cutting measures and pursuing a diversification strategy to reduce automotive dependency. The company maintains a solid balance sheet, which provides some flexibility as it works through this challenging period.
The success of Bertrandt’s turnaround will depend on both the effectiveness of its internal measures and an eventual recovery in the automotive sector, which management cautiously projects for the second half of 2025. Investors will be watching closely for signs of stabilization in the coming quarters.
Full presentation:
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