Half Year 2024 Wacker Neuson SE Earnings Call Transcript
Key Points
- EBIT margin increased by 1.5 percentage points in Q2 compared to Q1.
- Successful inventory reduction with a decrease of EUR54 million in one quarter.
- Free cash flow generation of EUR30 million in Q2, leading to a positive free cash flow of EUR5 million at the end of H1.
- Service business area saw a year-on-year increase of more than 3%, with growth in rental, spare parts, repair, and maintenance.
- Introduction of new machines like the 12-tonne dumper, contributing to a 2.2 percentage point increase in gross profit margin since Q4 2023.
- Revenue for the first half year declined by 12% to around EUR1.2 billion.
- Net working capital ratio remained elevated at 37%, driven by lower trade payables.
- Revenues in all regions remained below prior year, with significant drops in the Americas (17%) and Asia Pacific (31%).
- Low order intake and full dealer warehouses persist, reflecting a weak market environment.
- Net debt position increased by EUR64 million in Q2, partly due to dividend payout.
Good afternoon, everybody, and welcome to the half year earnings call of the Wacker Neuson Group. My name is Peer Schlinkmann, Head of Investor Relations and Corporate Communications. Thank you for joining today on the occasion of the release of our 2024 half year results.
After we have already published our preliminary figures on July 17, we will now present our full set of results that were released this morning. First, we will show the operational and financial results of the 2024 half year and give additional insights on the recent developments. Following this, we are happy to answer your questions in a Q&A session.
If you are not able to follow today's call via the webcast, the presentation slides are also available for download at wackerneusongroup.com/investor-relations. Please note that the entire call, including the Q&A session will be recorded and a replay will be made available on our corporate website by the end of the day.
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