HGears AG Group Faces Revenue Decline Amid Economic Challenges

hGears AG Group reported a decline in its 2024 revenues, totaling EUR 95.7 million, a 14.9% drop from the previous year. The economic slowdown and destocking, particularly in e-Mobility and e-Bike sectors, impacted earnings despite some stabilization in the e-Tools segment. The e-Bike business saw a significant decrease in sales by 36.1%, attributed to persistent high inventory levels. The e-Mobility area also recorded an 11.0% decrease in sales.

The Group managed an adjusted gross profit of EUR 43.6 million for 2024, showing a reduction mainly due to low volumes and inefficiencies. Adjusted EBITDA reached EUR 0.5 million, aided by cost-cutting measures. The company maintains a stable balance sheet with a 49.4% equity ratio and cash reserves of EUR 17.1 million.

Looking ahead to 2025, hGears forecasts group revenues between EUR 80 - 90 million and expects further financial pressure due to continued economic uncertainties.