MAX Automation SE Faces Challenges Amid Market Slowdown

MAX Automation SE is anticipated to report muted sales and margins for Q3, with revised FY24 guidance. Economic challenges and high price levels are causing customers to delay orders. Order intake fell 14% to €167M in H1'24, with a backlog decrease of 11%. The company expects a 9.9% decrease in Q3 sales, amounting to €90M, and forecast EBITDA at €7.1M with a 7.9% margin.

Bdtronic, significantly affected by reduced EV demand, saw a 52% drop in cyclical order intake to €32M. Despite its expanded capacity, bdtronic struggles with overcapacity. Elwema, however, saw a 32% increase in order intake due to stable combustion engine demand in the US.

MAX lowered its FY24 sales forecast to €350-380M and EBITDA to €27-31M. Despite these challenges, mid-term prospects remain intact, maintaining a BUY recommendation with a revised target price of €7.00.