Rosenbauer International AG Receives "Buy" Rating from NuWays AG

NuWays AG has classified Rosenbauer International AG with a "Buy" recommendation, supported by the company's solid financial performance for Fiscal Year 2023 (FY23). Despite a slight miss on sales expectations, Rosenbauer reported €1.06 billion in revenue, reflecting a 9.5% year-over-year increase. This was mainly due to a 12% price increase per fire truck, even as the number of units delivered decreased.

The company's EBIT improved significantly, reaching €37.5 million, up from a €10.6 million loss in FY22. This recovery is attributed to stabilized supply chains and substantial price hikes, leading to a 3.5% EBIT margin, aligning with the projected guidance. Future forecasts suggest a continual profitability uptrend, with an anticipated EBIT margin of 5.0% by FY25e, driven by factors including price adjustments, a growing electric vehicle business, and reduced supply chain disruptions.

Rosenbauer's order intake for FY23 was robust at €1.45 billion, an 18% increase from the previous year, resulting in a record-high order backlog of €1.79 billion. The demand is fueled by factors like global warming, which increases natural disasters and the need for firefighting equipment. Additionally, the company successfully refinanced with major financing partners, setting the stage for further growth without issuing new hybrid bonds, opting instead for a proposed capital increase.

NuWays AG has set a revised target price of €50 for Rosenbauer International AG, based on these positive indicators and the company's promising medium-term prospects.