KOBLENZ (dpa-AFX) - Automotive and industrial supplier Stabilus continued to feel the effects of weaker demand in the auto industry during its first fiscal quarter. Both revenue and earnings saw sharp declines. Nevertheless, the company is sticking to its targets for the current fiscal year. Stabilus shares initially rose by around six percent in early trading, but gains later dwindled to just under 0.4 percent. Over the past year, the stock has lost about 40 percent of its value.
Stabilus' revenue shrank by 10.7 percent year-on-year in the first fiscal quarter ending in December, dropping to just over 291 million euros, the SDax-listed company announced Monday in Koblenz. The specialist in gas springs was particularly impacted by the Asia-Pacific (APAC) region. Additionally, negative currency effects weighed on the company.
Overall, business with the energy, construction, and automotive industries was weaker in the opening quarter. The group recorded growth only in the rail, marine, and aerospace sectors.
The company's adjusted earnings before interest and taxes (EBIT), excluding special items, fell by nearly 23 percent to 29.3 million euros. The corresponding margin dropped by 1.5 percentage points to 10.1 percent. The company primarily attributed the decline to higher personnel costs. Net profit fell from 14.3 million euros a year ago to 8.1 million euros.
Stabilus has been struggling for some time with weaker demand from major automakers. Many manufacturers are facing a sharp drop in sales—due in part to weak demand in the key Chinese market. U.S. tariff policies are also causing difficulties for carmakers. In an effort to regain competitiveness, the company launched a cost-cutting program in September. The plan aims to streamline the organization, reduce personnel and operating costs, and optimize locations. Stabilus intends to cut 450 jobs worldwide, mainly in the European region (EMEA) and the Americas.
“Thanks to early cost and efficiency programs, we have increased profitability in the EMEA region and maintained a high level in APAC, even against the backdrop of a significant sales decline,” said CFO Andreas Jaeger. At the same time, the company succeeded in significantly increasing its free adjusted cash flow.
For the current fiscal year 2025/26 (ending in September), the management board led by CEO Michael Büchsner is still targeting revenue of between 1.1 billion and 1.3 billion euros and expects, at best, revenue in line with the previous year. The margin based on adjusted earnings before interest and taxes (EBIT margin) is projected to be between 10 and 12 percent. Management also expects adjusted free cash flow of 80 million to 110 million euros./mne/err/stw
