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Investing.com -- Duerr (ETR:DUEG) AG stock dropped 2.5% after the German engineering company lowered its order guidance and pre-announced disappointing second quarter results, citing tariff uncertainty among its client base.
The company now expects 2025 continued business orders of €3.8-4.1 billion, down from its previous forecast of €4.3-4.7 billion. While Duerr maintained its sales and adjusted EBIT margin guidance, it indicated that sales would likely come in at the lower end of its €4.2-4.6 billion range.
All divisions missed on orders during the second quarter, with Industrial Automation also significantly underperforming on margins. The revised guidance implies second-half orders of €1.9-2.2 billion compared to €1.9 billion achieved in the first half of the year.
Despite the order weakness, Duerr kept its adjusted EBIT margin guidance at 4.5-5.5%. Assuming sales reach the low end at €4.2 billion with a 5.0% margin, this would translate to adjusted EBIT of approximately €210 million.
"While soft orders in automative are not a surprise the breadth of the order weakness surprises negatively. We think the c10% consensus earning downgrade that we would see for 2025 does also apply to 2026," UBS analysts commented on the announcement.
The engineering firm’s guidance adjustment suggests potential downside of approximately 10% to consensus adjusted EBIT estimates for 2025.
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