Release Date: March 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- JOST Werke SE (XTER:JST, Financial) successfully signed new OEM customer contracts in agriculture and construction, gaining market share.
- The company significantly improved its carbon footprint by reducing CO2 emissions by 58% compared to 2020.
- Strategic investments in R&D with Autonomy Group and Stratodynamics have positioned JOST Werke SE to access pioneering technology in transport.
- The acquisition of FIA Group marks an important step in expanding into off-highway markets, enhancing resilience and profitability.
- Despite a challenging market environment, JOST Werke SE maintained a healthy EBIT margin of 10.6%.
Negative Points
- Sales declined by 14.4% compared to 2023, with a significant market downturn in transport affecting numbers.
- Adjusted EBIT was down 19.8% from the previous year, reflecting the challenging market conditions.
- The organic sales decline was 18%, driven by a 19% decline in the transport sector.
- Earnings per share declined by 16% to €5.20, indicating pressure on profitability.
- The European region faced an organic sales decline of 18%, with truck demand down by 24% and trailers down by 5%.
Q & A Highlights
Q: Can you elaborate on your guidance for 2025 and how it aligns with market expectations, particularly considering potential infrastructure investments in Germany and Ukraine?
A: The guidance does not currently factor in potential infrastructure investments in Germany or the reconstruction of Ukraine. If these occur, they would positively impact our business, especially in transport and construction sectors. However, we have not included these in our current outlook, so they would represent an upside to our projections. (Respondent: Unidentified_1)
Q: How does Hiva's market position in Asia, particularly India, compare to Europe, and is there potential for market share growth in Europe?
A: Hiva is dominant in India and strong in Asia. In Europe, Hiva holds about a 40% market share in tipping cylinders. While market growth will naturally increase our share, significant market share changes in Europe are not expected in the short term. (Respondent: Unidentified_1)
Q: What are your expectations for synergies from the Hiva acquisition, and how will they impact your midterm margin targets?
A: We expect to realize the full effect of synergies by Q4 2026, which will support our margin targets for 2027. We are optimistic about exceeding our initial synergy target of €20 million. (Respondent: Unidentified_1)
Q: Can you provide more details on the positive signs in European truck demand and the expected tax rate for 2025?
A: We are seeing increased order intake from truck OEMs, which will impact sales in Q2 and Q3. For 2025, we anticipate a tax rate of around 27%, consistent with our adjusted tax rate. (Respondents: Unidentified_1 and Unidentified_2)
Q: What is the expected organic sales growth for 2025, excluding the Hiva acquisition?
A: Excluding the Hiva acquisition and FX impacts, we anticipate organic sales growth of 0% to 2.5% for 2025, driven by a slight recovery in the EEA regions. (Respondent: Unidentified_2)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
