TKH Group stock rises on 4Q earnings beat

Published 04/03/2025, 10:20
© Reuters.

Investing.com -- Shares of TKH Group climbed 2% following the release of their fourth-quarter earnings, which revealed a 5% year-on-year (YoY) increase in EBITA, reaching €66.0 million and surpassing consensus estimates of €64.7 million.

The company’s performance was bolstered by a 4.7% organic revenue recovery, largely attributed to its Smart Vision and Smart Manufacturing segments, along with an EBITA margin that expanded by 30 basis points to 14.6%, exceeding the anticipated 13.7%.

Despite the positive quarterly results, TKH Group’s full-year EBITA for 2024 saw a 14% decline, standing at €203.9 million, which still managed to beat the consensus of €202.6 million and came in above the company’s revised guidance range of €200 million to €210 million.

This annual decline was driven by a 1.2% organic revenue decrease and a 90 basis points contraction in EBITA margin to 11.9%, primarily due to underperformance in the Smart Connectivity sector, which faced issues such as destocking and a delayed ramp-up of a new facility in Eemshaven.

Looking ahead to fiscal year 2025, TKH Group anticipates organic growth in both turnover and EBITA, with consensus estimates projecting a 21% increase to €246 million. This expected growth is thought to be driven by the Smart Vision segment and a recovery in Smart Connectivity, which is supported by a robust order book and anticipated cost savings of €15 million.

The company is also planning to provide a strategy update on September 25th, which may offer further insights into its future plans and operational direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.