SBF AG presents solid half-year figures in a persistently challenging market environment

SBF AG presents solid half-year figures in a persistently challenging market environment

Leipzig, 17 October 2024 – SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, ‘SBF’), a listed specialist for innovative solutions in the fields of rail vehicles, lighting, electromechanics and sensor technology, today published its half-year report 2024. The company has achieved solid business results in a very challenging market environment and is optimistic about its future business development.

Group revenue reached EUR 22.9 million in the first half of the year (H1-2023: EUR 16.9 million). The significant year-on-year increase is due in particular to the first-time consolidation of AMS Software & Elektronik GmbH. Despite the overall good order situation, SBF was unable to fully overcome the major challenges still confronting the manufacturing industry. All divisions were affected by this. Nevertheless, EBITDA was positive at EUR 0.1 million (H1-2023: EUR 0.4 million).

Rudolf Witt, member of the Management Board of SBF AG, comments: “In the first half of the year, we have laid important foundations for a successful future. In particular, we expect valuable synergy effects from the ongoing integration of AMS. With our high order backlog for the second half of the year and the implementation of strategic measures to optimize costs, we are ideally equipped. The expansion of our capacities and measures to increase efficiency will further strengthen our position. The industry's enormous growth potential became clear at the leading trade fair InnoTrans in Berlin. The discussions we held with industry leaders at our booth confirmed that SBF is on the right track. With innovative solutions, we are strategically well positioned to play a key role in shaping the ‘future of mobility’.”

Robuste operative Entwicklung in herausforderndem Marktumfeld
The segment “Rolling Stock“ generated a turnover of EUR 9 million in the first half of the year. SBF expects revenue to pick up in the second half of the year, in particular due to the planned delivery of a major order. In addition, SBF anticipates full production capacity utilization from the second half of the year onwards due to the extraordinarily high order backlog of EUR 70 million and the agreed project durations. An additional smaller production facility for mechanical production was therefore opened in Budweis to strengthen capacity. The order backlog and full capacity utilization confirm SBF's excellent positioning in the rail market.

Turnover in the “Public and Industrial Lighting” segment totaled EUR 6 million and developed less dynamically than originally expected. This reflected the lower order intake and the weakening economy in the manufacturing sector in Germany. Nevertheless, SBF made progress in improving its earnings situation and is aiming to break even soon. To this end, measures have been introduced to increase profitability, including the relocation of the Springe site to Budweis. This will result in lower rental and personnel costs from 2025. The structural measures introduced are expected to take full effect from the coming financial year.

The new “Sensor Technology and Electromechanics” segment developed robustly as expected with a revenue of EUR 7 million in the first half of the year. Although the earnings situation was temporarily affected by integration costs following the acquisition of AMS Software & Elektronik GmbH, the order situation is stable. The integration into the SBF Group is proceeding according to plan and in-house production of special PCBs has already begun at the subsidiaries. The increasing synergy effects will have a positive impact on the profitability of the SBF Group in the long term. The new “Sensor Technology and Electromechanics” segment thus plays a key role in the SBF Group's growth strategy.

Course set for sustainable profitable growth
SBF's growth strategy is based on three main pillars: Innovation, internationalization and strategic acquisitions. SBF secures its position as a technology leader through continuous investment in research and development. The growth momentum is to be further strengthened by tapping into new international markets. SBF consolidates its market position and diversifies its product portfolio with strategic acquisitions, such as the successful takeover of AMS. Strategic alliances are also planned to further strengthen the company's market presence.

Rudolf Witt, member of the Management Board of SBF AG, looks ahead to further business development: “The global momentum in the railway technology sector will increase in the coming years. We will participate in this development. We plan to further increase our market share in the DACH region and Europe and tap into new markets. For us, this would mean continuous revenue growth and a double-digit EBITDA margin again.”

The Management Board confirms its growth forecast for the 2024 financial year, even in the persistently difficult market environment. Consolidated revenues of between EUR 48 and EUR 50 million and a mid-six-figure negative consolidated net income are expected. EBITDA is expected to amount to more than EUR 0.3 million. The structural measures introduced will have a positive impact on profitability from the coming financial year.

The 2024 half-year report is available on the company’s website at https://www.sbf-ag.com/investor-relations/finanzpublikationen.

About the SBF-Gruppe:
The listed SBF Group is a specialist for innovative solutions in the fields of rolling stock, lighting, electromechanics and sensor technology. In the group of companies, highly specialized and leading hidden champions in their fields pool their expertise. With a high-quality and forward-looking product and service portfolio, SBF benefits from the megatrends of mobility, climate protection, automation and digitalization.

In the “Rolling Stock” business field, the Tier 1 system supplier and development partner supplies the world's leading rolling stock manufacturers with complex interior, ceiling and lighting systems “Made in Germany”. The “Public and Industrial Lighting” business field comprises intelligent and customized LED systems for efficient lighting for industrial, municipal and infrastructural projects. In addition, the “Sensor Technology and Electromechanics” business field develops and produces pioneering components and software for electromechanical products such as circuit boards, sensors and communication technology.

For more information, visit https://www.sbf-ag.com.

Company contact:
SBF AG
Management Board
Zaucheweg 4
04316 Leipzig
Tel: +49 (0)341 65235 894
E-Mail: info@sbf-ag.com

Press contact
Kirchhoff Consult GmbH
Alexander Neblung
Borselstraße 20
22765 Hamburg
Tel: +49 (0)40 60 91 86 70
E-Mail: sbf@kirchhoff.de