Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com -- Wacker Neuson Group reported on Wednesday that its revenue for 2024 fell 15.8% to €2,234.9 million, as weak demand in the construction and agricultural sectors, combined with high dealer inventories, weighed on performance.
“The Wacker Neuson Group looks back on a challenging year 2024, characterized by market uncertainties and weak demand, which led to declining revenues and also impacted our profitability,” the construction equipment manufacturer said in a statement.
Revenue declines were recorded in each quarter, with the steepest drop of 20.1% in the third quarter.
The EBIT margin contracted to 5.5%, down from 10.3% in 2023, while earnings before taxes fell 60.1% to €101.5 million.
Net profit dropped 62.2% to €70.2 million, reducing earnings per share from €2.73 to €1.03. The EBITDA margin declined to 12.8% from 15.7%, and the gross profit margin slipped to 23.2% from 24.4%.
Despite these declines, free cash flow improved to €184.6 million following inventory reductions and a decrease in net working capital to €709.3 million.
Net financial debt was cut by 15% to €310.6 million. Return on capital employed fell to 6.1% from 13.2%, while total capital employed dropped to €2,008.2 million.
“The Wacker Neuson Group took active measures against this by implementing cost reductions and production optimizations, successfully reducing our inventories,” the company added.
Market conditions were particularly difficult in North America, where demand remained weak throughout the year.
Agricultural equipment sales showed resilience early in 2024 but softened from the second quarter, while construction equipment faced persistent challenges with lower-than-expected order intake.
Wacker Neuson remains cautious about the pace of recovery. “Despite the consolidation in 2024, the Wacker Neuson Group will continue to focus on its Strategy 2030 and consistently invest in innovations in 2025 and beyond,” the company stated.
Analysts tracking the company maintained mixed recommendations. As of December 31, 2024, two rated the stock a buy, two recommended holding, and one suggested selling. Price targets ranged from €11.50 to €22.50, with a median of €16.00.
Reflecting weaker earnings, the company proposed a dividend of €0.60 per share for 2025, down from €1.15. The proposal will be voted on at the Annual General Meeting scheduled for May 23.