R. Stahl AG Maintains Solid Prospects Amidst Modest Q3 Expectations

R. Stahl AG is set to release its third-quarter report on November 6th, with expectations of moderate sales growth and a slight decline in EBIT from a high comparable base. The company anticipates sales to reach €90 million, marking a 4.7% increase from the previous year, supported by a robust order backlog of €121 million at the end of H1 2024. However, EBIT is predicted to decrease by 12% year-on-year to €7.5 million, resulting in an 8.3% EBIT margin.

The company's EXcelerate strategy program is nearing completion, having already incurred 80% of its costs. Nevertheless, increasing personnel costs could challenge profitability, expected to rise to €36 million, which is 40% of sales.

Order intake has shown recovery, driven by structural trends in LNG and nuclear industries. Management forecasts full-year sales of €335-350 million and an adjusted EBITDA of €35-45 million, reflecting the steady demand for electrical explosion protection solutions. R. Stahl's future appears promising, given its market position in the LNG sector and the rising need for production automation.