EDAG Group in the first half year 2024 solid in a challenging market environment

Press release

EDAG Engineering Group AG:
EDAG Group in the first half year 2024 solid in a challenging market environment

• Revenue growth of 1.8% to EUR 429.2 Mio. in first half year
• EBIT margin at 5.1% almost at previous year’s level
• Significant increase in free cash flow to EUR 37.6 million

Arbon, 30. August 2024 EDAG, one of the leading independent engineering services provider to the global mobility industry and technology developer for industrial solutions, has published its report for the first half year 2024 today. In an increasingly challenging market environment in the automotive industry, EDAG was able to maintain its position well in the reporting period.

At Group level, revenues of EUR 429.2 million were 1.8 percent above previous year’s level of EUR 421.6 million. This growth was largely driven by developments in the Production Solutions segment, which increased its revenue by stellar 26.3 percent. Vehicle Engineering was able to increase revenue marginally. Electrics/Electronics was unable to maintain the positive development of the previous quarters and recorded a decline of 2.7 percent. This occurred in the context of lower call-offs of individual OEMs and Tier 1 suppliers, partly due to strategic realignments in some areas in this segment.

At EUR 21.8 million Group EBIT was below the previous year’s figure of EUR 24.9 million. Adjusted Group EBIT also amounted to EUR 21.8 million (previous year: EUR 23.5 million). At 5.1 percent, the EBIT margin was below the previous year’s figure of 5.9 percent; the adjusted EBIT margin was 5.1 percent (previous year: 5.6 percent). All three segments made a positive contribution to earnings in the first six months of the year. Considering the challenges of the difficult market environment, performance in the first half of the year was satisfactory.

Order intake was at EUR 481.0 million in the past half-year which is slightly below the figure of EUR 502.3 million in the strong previous year. Operating Cashflow increased by EUR 37.5 million to EUR 23.4 million (previous year: EUR -14,1 million) and free cash flow by EUR 37.6 million to EUR 11.2 million (previous year: EUR -26.4 million). As of June 30, the company had 9,051 employees worldwide (previous year: 8,596 employees).

For the 2024 financial year, EDAG expects further growth and a stable earnings development. The forecast is associated with opportunities and risks which arise primarily from changes in market developments for our customers and, as a result, for us. Geopolitical uncertainties, the development of wage costs and the sufficient availability of qualified personnel have further influence on this.

The forecasts made for 2024 remain valid:
Revenue is expected to grow by around 4 to around 6 percent. The adjusted EBIT margin is expected in a range of around 5 to around 6 percent.
As a result of the challenging market situation, both revenue and adjusted EBIT margin are expected to be rather on the lower end of the guidance.

About the EDAG Group

The EDAG Group is a globally leading, independent engineering services provider that combines excellent engineering with the latest technology trends.

With a global network of some 70 branches, the EDAG Group realizes projects in the Vehicle Engineering, Electrics/Electronics and Production Solutions segments. Drawing on more than 50 years of engineering experience, EDAG's proprietary 360-degree development approach has become a hallmark of quality in the holistic development of vehicles and smart factories. The company's interdisciplinary expertise in the areas of software and digitization provides it with crucial skills to actively shape dynamic transformation processes as an innovative partner.

With an interdisciplinary team of around 9,000 experts, the EDAG Group develops unique mobility and industrial solutions for customers that include the world's leading automotive and non-automotive companies. The company is listed on the stock exchange since 2015 and generated revenues of € 844 million in 2023.

For more information, see the EDAG Group website: www.edag.com

Contacts:

Public Relations
Felix Schuster 
Head of Marketing & Communications  
Mobile:    +49 (0) 173 - 7345473
Mail:       pr@edag.de
www.edag.com

Investor Relations
Christian Schütze 
Head of Investor Relations  
Telefon:  +49 (0) 611 - 7375 360 
Mobil :     +49 (0) 175 - 8020 226
Mail:        ir@edag-group.ag
www.edag.com

Forward-looking statements

This release contains forward-looking statements. These statements are based on current estimates and projections of the EDAG Executive Board and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not be accurate. Many factors could cause the actual results, performance or achievements of EDAG to be materially different from those that may be expressed or implied by such statements. EDAG does not assume any obligation to update the forward-looking statements contained in this release.