Hiab shares drop 13% after U.S. sales slump hits profit

Investing.com -- Hiab Corporation (HE:HIAB) shares plunged over 13% on Friday after the Finnish load-handling equipment maker reported a sharp drop in quarterly profit and sales, citing weaker U.S. demand and trade tensions that hurt its largest market.

Comparable operating profit fell 24% to €40 million from €52 million a year earlier, with the margin narrowing to 11.4% from 13.4%. Sales declined 11% to €346 million from €388 million as equipment demand weakened, particularly in the United States. 

“Our business was negatively impacted by the elevated market uncertainty caused by increased trade tensions,” President and CEO Scott Phillips said in a statement.

He added that the impact was “particularly visible in the US market, where both our orders and sales decreased,” estimating a roughly €20 million hit to quarterly operating profit.

Orders received fell 3% to €351 million, while the order book stood at €557 million at the end of September, down from €648 million at the end of 2024. 

Order intake remained stable in constant currencies but fell sharply in the Americas, where orders dropped 29% to €132 million. 

Orders grew in EMEA, up 26% to €195 million, supported by defense logistics and wind energy projects, and rose 11% to €24 million in Asia-Pacific.

By region, EMEA accounted for 56% of total orders, the Americas 38%, and Asia-Pacific 7%. Sales by geography showed similar trends, with Americas down 21% to €140 million, EMEA down 5% to €178 million, and Asia-Pacific up 18% to €29 million.

The Services segment continued to expand, with sales increasing 4% to €116 million, representing 34% of total sales compared with 29% a year earlier. 

Services’ comparable operating profit rose 24% to €27 million, or 23.5% of sales. The Equipment segment’s sales dropped 17% to €230 million, while comparable operating profit declined 48% to €20 million, or 8.8% of sales.

Eco portfolio sales, which include products meeting updated sustainability criteria, rose 23% to €140 million, accounting for 40% of total sales, up from 29% last year. 

Profit for the quarter was €29 million, down from €40 million, while basic earnings per share fell to €0.45 from €0.62. Cash flow from operations before finance items and taxes totaled €69 million, down from €148 million.

For the first nine months of 2025, orders increased 1% to €1.1 billion and sales decreased 6% to €1.16 billion. 

Comparable operating profit for the period was €166 million, compared with €176 million a year earlier.

Hiab closed the sale of its former MacGregor business on July 31, which strengthened its balance sheet. Net cash at the end of the quarter was €308 million, compared with €186 million at the end of 2024. Following the sale, the Board approved an additional dividend of €101 million, paid on Oct. 9.

Hiab maintained its full-year 2025 outlook, expecting a comparable operating profit margin above 13.5%, compared with 13.2% in 2024. 

Phillips said the company is “initiating planning of a programme targeting to reach an approximately €20 million lower cost level in 2026 compared to 2025.”

The company’s operative return on capital employed improved to 29.8% from 27.1%, supported by working capital management.