Business
Stratec : Quarterly Statement Q1|2025
Stratec : Quarterly Statement
About this update from Stratec Se
QUARTERLY STATEMENT Q1|2025 January 1 to March 31, 2025 STRATEC QUARTERLY STATEMENT Q1|2025 STRATEC POSTS RESULTS FOR FIRST QUARTER OF 2025 Adjusted EBIT margin in Q1/2025 rises by 350 basis points to 8.9 % (Q1/2024: 5.4 %) Consolidated sales grow by 12.0 % to € 60.4 million (Q1/2024: € 53.9 million; at constant currency: 10.9 %; previous year's figure restated from € 50.9 million) Strong demand and new cooperations for software solutions (e.g. for product cybersecurity) and for product lifecycle management 2025 guidance confirmed: Consolidated sales at constant currency expected to show growth in a low to medium single-digit percentage range with adjusted EBIT margin of around 10.0 % to 12.0 % Key figures 1 € 000s Q1/2025 Q1/2024 2 Change Sales 60,363 53,888 +12.0 % (cc: +10.9 %) Adjusted EBITDA 9,305 6,592 +41.2% Adjusted EBITDA margin (%) 15.4 12.2 +320 bps Adjusted EBIT 5,363 2,921 +83.6 % Adjusted EBIT margin (%) 8.9 5.4 +350 bps Adjusted consolidated net income 3,155 1,064 +196.5 % Adjusted earnings per share (€) 0.26 0.09 +188.9 % Earnings per share (€) 0.12 0.02 +500.0 % bps = basis points cc = constant currency 1 To facilitate comparison, figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and other non-recurring items (including one-off advisory expenses, fees, and restructuring expenses). 2 Restated pursuant to IAS 8. 2 BUSINESS PERFORMANCE The STRATEC Group increased its consolidated sales from € 53.9 million in the previous year's period to € 60.4 million in the first quarter of 2025. On a constant-currency basis, this corresponds to sales growth of 10.9 % (nominal: 12.0 %). Given increasing test volumes, our Spare Parts and Consumables business in particular continued to post a highly dynamic performance. Sales in this division showed clear double-digit percentage growth compared with the previous year in the first quarter of 2025. Sales with Development and Services also grew significantly in the first quarter of 2025, while the Systems business reported a moderate reduction in sales. Adjusted EBIT increased from € 2.9 million in the previous year's period to € 5.4 million in the first quarter of 2025. As a result, the adjusted EBIT margin rose by 350 basis points to 8.9 % (Q1/2024: 5.4 %). Among other factors, the company's profitability benefited from the increased share of sales generated with higher-margin Spare Parts and Consumables, as well as from the measures implemented to enhance earnings. Driven by increased operating profitability, adjusted consolidated net income also improved, in this case from € 1.1 million in the previous year to € 3.2 million. Adjusted earnings per share (diluted) for the first quarter of 2025 therefore stood at € 0.26, as against € 0.09 in the previous year's period. Based on a joint analysis with the external auditor appointed for the first time for the 2024 financial year, STRATEC made adjustments in accordance with IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) to the accounting method used to recognize development cooperations in the consolidated financial statements. The intra-year figures for the 2024 financial year have therefore been restated. Further information about this can be found in the 2024 Annual Report. Reconciliation of adjusted EBITDA, EBIT, and consolidated net income To facilitate comparison, the key earnings figures for the first quarter of 2025 have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and other non-recurring items (including one-off advisory expenses, fees, and restructuring expenses). A reconciliation of the adjusted results with the unadjusted key earnings figures is presented below: Reconciliation of adjusted EBITDA (€ 000s) Q1/2025 Q1/2024 1 Adjusted EBITDA 9,305 6,592 Adjustments: Other 2 -1,369 -48 EBITDA 7,936 6,544 1 Restated pursuant to IAS 8. Further details can be found in the 2024 Annual Report. 2 Including one-off advisory expenses, fees, and restructuring expenses Reconciliation of adjusted EBIT (€ 000s) Q1/2025 Q1/2024 1 Adjusted EBIT 5,363 2,921 Adjustments: PPA amortization -924 -947 Other 2 -1,369 -48 EBIT 3,070 1,926 1 Restated pursuant to IAS 8. Further details can be found in the 2024 Annual Report. 2 Including one-off advisory expenses, fees, and restructuring expenses Reconciliation of adjusted consolidated net income (€ 000s) Q1/2025 Q1/2024 1 Adjusted consolidated net income 3,155 1,064 Adjusted earnings per share in € (basic) 0.26 0.09 Adjustments: PPA amortization -924 -947 Other 2 -1,369 -48 Taxes 584 216 Consolidated net income 1,446 285 Earnings per share in € (basic) 0.12 0.02 1 Restated pursuant to IAS 8. Further details can be found in the 2024 Annual Report. 2 Including one-off advisory expenses, fees, and restructuring expenses 3 STRATEC QUARTERLY STATEMENT Q1|2025 FINANCIAL GUIDANCE Overall, the first-quarter sales and earnings performance is consistent with the assumptions made in the intra-year budgets underlying the 2025 financial guidance. In view of this, and given the confirmation of demand trends in the Systems business and for Service Parts and Consumables, STRATEC's Board of Management can confirm the guidance issued for the 2025 financial year. STRATEC therefore still expects to generate year-on-year constant-currency sales growth in a low to medium single-digit percentage range in the 2025 financial year. A figure of around 10.0 % to 12.0 % is forecast for the adjusted EBIT margin (2024: 13.0 %). Here, earnings contributions from Development and Services are expected to show significant intra-year growth in the fourth quarter of 2025 in particular. Given that the downstream effects of the pandemic have not yet been fully absorbed and in light of geopolitical conflicts, potential tariffs, and trade barriers, STRATEC expects to see continuing increased volatility in its cus-tomers' order behavior. As a result, the key sales and earnings figures forecast for 2025 are subject to greater uncertainties than usual. For the 2025 financial year, STRATEC has budgeted investments in property, plant and equipment and in intangible assets corresponding to a total of 8.0 % to 10.0 % of sales (2024: 7.1 %). PROJECTS AND OTHER DEVELOPMENTS In the first quarter of 2025, STRATEC again pressed ahead with numerous developments and projects and concluded new cooperation agreements. One example involves customers' ever-higher requirements for cyber-security in laboratory products, which is creating great demand for STRATEC's corresponding software solution. Furthermore, STRATEC is at an advanced stage of negotiations concerning the agreement of further cooperations on programs to extend the product lifecycles of systems already approved. DEVELOPMENT IN PERSONNEL Including personnel hired from temporary employment agencies and trainees, the STRATEC Group had a total of 1,443 employees at the end of the first quarter of 2025 (previous year: 1,473).This corresponds to a reduction of 2.0 %, which is to be viewed in connection with capacity adjustments and further measures relating to the earnings enhancement program initiated in 2023 and since continued. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .