Stabilus SE continues growth trajectory in the second quarter of FY2023

CORPORATE NEWS

Stabilus SE continues growth trajectory in the second quarter of FY2023

• Revenue growth of 10.5% increases revenue in the second quarter of FY2023 to €310.6 million  (Q2 FY2022: €281.2 million)
• Adjusted EBIT^[1] in Q2 at €40.8 million, after €39.3 million in Q2 FY2022
• Q2 result of €42.6 million (Q2 FY2022: €26.2 million) and free cash flow before acquisitions (adj. FCF^[1]) at €12.1 million (Q2 FY2022: €10.2 million)
• Forecast confirmed for FY2023 with revenue of €1.1 billion to €1.2 billion and an adjusted EBIT^[1] margin of 13% to 14%

Koblenz, May 2, 2023 – Stabilus SE (WKN: STAB1L, ISIN: DE000STAB1L8), one of the world's leading suppliers of motion control solutions for a wide range of industries, today published its financial report for the second quarter of fiscal year 2023 (ended March 31, 2023). After a strong start to the 2023 fiscal year in the first quarter, Stabilus once again achieved double-digit revenue growth. This is primarily due to the above-average performance of the Automotive Powerise business unit in the EMEA region and Industrial business unit in the Americas region.

Group revenue in the second quarter of FY2023 increased by 10.5% to €310.6 million compared to the same quarter of the previous year (Q2 FY2022: €281.2 million). Adjusted for currency effects, Group revenue increased by 7.7%.

Dr. Michael Büchsner, CEO of Stabilus, said: “The results of the second quarter show that the diversification of our business model – both geographically and by market segment – is paying off. Continuous innovation is an important component and success factor of our long-term strategy STAR 2030. In order to realize this, we once again held our ‘Innovation Race’ in 2023, a global corporate initiative to identify the best product and process ideas and to promote entrepreneurship. More than 12 percent of our employees took part in the competition this year and submitted over 300 product and process proposals. This is a great demonstration of how deeply rooted the culture of innovation is at Stabilus.”

Americas strongest region in the second quarter

In the EMEA segment, revenue in Q2 FY2023 increased by 9.8% to €137.2 million (Q2 FY2022: €124.9 million). This is mainly due to strong growth of 24.7% in the Automotive Powerise business unit. Stabilus products are independent of the vehicle’s powertrain and therefore also independent of the combustion engine. More and more Powerise drives are being used in the electric cars. In the Americas, revenue increased by 19.7% year-on-year to €114.0 million (Q2 FY2022: €95.2 million), where the Industrial was the fastest-growing business unit with growth of 24.0%. In the Asia-Pacific segment, Stabilus recorded a slight decline in revenue of 2.5% compared to the same quarter of the previous year to €59.5 million (Q2 FY2022: €61.0 million). Although organic growth was positive at 0.6%, negative currency effects of 3.1% counteracted this development. The Automotive Powerise and Industrial business units were able to hold their own in the region with organic growth of 4.8% each.

Industrial business unit grows faster than the overall market in Q2 FY2023

In the past quarter, the Industrial business unit showed above-average growth with organic revenue growth of 10.8% to €120.2 million (Q2 FY2022: € 107.4 million), which was also significantly above global economic growth. The strongest development was recorded in the market segments Energy, Construction, Industrial Machinery & Automation (ECIMA) and Mobility. The Automotive Powerise business unit also outperformed global light vehicle production in the reporting period, where revenue increased organically by 8.3% to €104.3 million (Q2FY2022: €91.8 million) and easily outpaced the growth in light vehicle production of 5.7%. In the Automotive Gas Spring business unit, the company recorded an increase in organic revenue growth of 2.9% to €86.2 million (Q2 FY2022: €82.0 million).

Adjusted EBIT margin of 13.1% in the second quarter

Adjusted operating profit (adjusted EBIT^[1]) increased by 3.8% to €40.8 million in Q2 FY2023 (Q2 FY2022: €39.3 million). This corresponds to an adjusted EBIT margin of 13.1%, compared to 14.0% in the same quarter of the previous year, Q2 FY2022.

In Q2 FY2023, profit was €42.6 million, after €26.2 million in the same quarter of the previous year. Free cash flow before acquisitions (adj. FCF^[1]) increased by 18.6% to €12.1 million, compared to €10.2 million in Q2 FY2022.

Forecast for fiscal 2023 confirmed

Stabilus confirms its forecast for fiscal 2023 after the positive business development in the first half of the year and continues to expect revenue of €1.1 million to €1.2 million with an adjusted EBIT margin of 13% to 14%.

The interim report for the second quarter of fiscal 2023 can be downloaded on the company's website at Investors / Financial Reports & Presentations.

________________________

^[1] Cf. definition/calculation of KPI’s ‘adjusted EBIT’ and ‘free cash flow (FCF)’ in the Interim Report Q2 FY2023, pages 17 and 20, that can be downloaded from the company’s website at Investors / Financial Reports & Presentations.

Investor contact:
Andreas Schröder
Tel.: +49 261 8900 8198
E-Mail: anschroeder@stabilus.com

Press contact:
Peter Steiner
Tel.: +49 69 794090 27
E-Mail: stabilus@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

Stabilus is one of the world's leading providers of motion control solutions for customers across a broad spectrum of industries including mobility, health, recreation, furniture, energy, construction, industrial machinery and automation. With more than eight decades of demonstrated expertise, Stabilus offers reliable and innovative motion control solutions that enable, enhance and automate opening, closing, lifting, lowering and adjusting actions. The company's customized damping and vibration isolation technology protects against shocks, vibrations and noise. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz, Germany. In the 2022 fiscal year, Stabilus has reported revenue of €1.1 billion. Stabilus has a global production network encompassing plants in eleven countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North and South America, as well as in Asia-Pacific. Stabilus SE is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the MDAX index.

Important Notice

This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.