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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.
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