Release Date: April 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- technotrans SE (XTER:TTR1, Financial) achieved a solid annual result with a revenue of EUR238 million and an EBIT margin of 5.2%, despite a challenging economic environment.
- The company saw significant growth in its Energy Management sector, with a 27% revenue increase, contributing 15% to the group's total revenue.
- technotrans SE successfully implemented its efficiency program, ttSprint, which improved profitability and resulted in a record adjusted EBIT margin of 8.7% in Q4 2024.
- The company maintained a strong equity ratio of 60.5% and reduced net debt to EUR18.5 million, indicating a robust financial position.
- technotrans SE proposed a dividend of EUR0.53 per share, aligning with its long-term dividend policy and reflecting confidence in its financial stability.
Negative Points
- The company's overall revenue declined by 9% from the previous year, impacted by weaker market dynamics in Print and Laser sectors.
- technotrans SE faced a 25% drop in revenue in its laser market due to economic slowdown, with an uncertain outlook for 2025.
- The Print business experienced a 12% revenue decline, affected by the challenging economic environment.
- The Plastics market also saw a 10% revenue decrease, driven by economic uncertainty and delayed customer investments.
- technotrans SE incurred restructuring costs of EUR2.1 million, impacting its EBIT margin, and faced challenges in maintaining profitability across all segments.
Q & A Highlights
Q: Can you explain the positive mix effects seen in the fourth quarter, particularly in technologies?
A: The positive product mix was mainly driven by strong order intake in Energy Management and Healthcare Analytics. - Michael Finger, CEO
Q: Are there any risks from U.S. tariffs affecting your data center cooling equipment?
A: We have been dealing with tariffs for shipments from China to the U.S. for years. However, most of our contracts are export-based, so the direct impact is minimal. We haven't seen significant indirect impacts either. - Michael Finger, CEO
Q: Was there a cancellation or pushout in the order backlog from Q3 to Q4?
A: Yes, there was a cancellation in the fourth quarter, primarily from our Chinese location. - Michael Finger, CEO
Q: How is 2025 starting in terms of order intake and sentiment?
A: 2025 has started in line with our expectations. Tariffs and sentiment have not impacted us significantly so far. - Michael Finger, CEO
Q: Are the technology margins seen in Q4 sustainable at current production levels?
A: Sustainability of margins depends on maintaining the current product mix and volume. If these continue, we expect to sustain positive margins. - Michael Finger, CEO
Q: What is the outlook for free cash flow in 2025?
A: We do not provide guidance on free cash flow, but we are planning some investments, including expanding our facilities. - Natascha Sander, CFO
Q: What needs to happen to reach the upper EBIT range of 9% in 2025?
A: Achieving higher order intake, especially in Energy Management and Print, will improve our product mix and drive margins towards 9%. We are also expanding capacities for data centers. - Michael Finger, CEO
Q: Do you expect any one-off charges in 2025?
A: We do not anticipate significant restructuring costs for 2025, but we will adjust if market conditions require it. - Natascha Sander, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
