Wacker Neuson Group: first quarter of 2024 weaker than 2023

Group revenue down 11.1 percent year-over-year to EUR 593.1 million in Q1 2024.

As expected, the Wacker Neuson Group got off to a slow start in the fiscal year 2024 due to the ongoing economic slowdown in the construction and agricultural sectors. 

High dealer inventories are also leading to a weaker order intake and make it more difficult to reduce net working capital. Measures to reduce SG&A as well as direct and indirect production costs have already been taken, but have not yet been able to fully compensate the reduced production output. Revenue fell by 11.1 percent year-over-year to EUR 593.1 million (Q1 2023: EUR 667.2 million), while earnings before interest and taxes (EBIT) amounted to EUR 36.9 million (Q1 2023: EUR 87.8 million). At 6.2 percent, the EBIT margin was lower than in the previous year (Q1 2023: 13.2 percent), but already higher than in the previous quarter of Q4 2023 (5.1 percent). The Wacker Neuson Group expects market demand and plant capacity utilization to improve over the remainder of the year, accompanied by a reduction in inventories. The full-year guidance for revenue and EBIT remains unchanged. The Group will also continue to focus on the implementation of its Strategy 2030 along the ten strategic levers. In the long term, the Group is aiming to achieve a revenue of EUR 4 billion, an EBIT margin of over 11 percent and a ratio of net working capital to revenue of less than 30 percent.

“After a very successful previous year, the 2024 financial year has begun with the expected challenges. The cyclical nature of the business is no surprise to us – we have already begun to adapt our structures to the lower market demand. We expect to increase revenue and profitability from quarter to quarter. We pay close attention to our annual targets and confirm them. Strategy 2030 keeps us on course in the long term and secures our track record,” explains Dr. Karl Tragl, Chairman of the Executive Board and CEO of the Wacker Neuson Group.