HGears AG Faces Decline Amid Automotive Crisis

hGears AG Group reports a 13.6% decline in group sales for the first nine months of 2024, reaching EUR 72.6 million. This decline is attributed to destocking and an ongoing automotive crisis. Both the e-Tools and [e]-Mobility segments saw a downturn, while the e-Bike sector sales plunged by 28% to EUR 14.3 million due to slow destocking.

The group's adjusted gross profit stands at EUR 33.7 million, marking a 21% drop compared to the previous year. Despite this, aggressive cost-cutting measures helped reduce the fall in adjusted EBITDA to EUR 0.4 million. hGears maintains a stable balance sheet with a 52.5% equity ratio.

Sven Arend, CEO, highlights a lack of anticipated stabilization amid economic and political challenges, with no short-term demand recovery expected, particularly in [e]-Mobility. The company remains focused on stringent cost management and readiness for market resurgence.