SAF-HOLLAND Reports Lower Earnings and Revenue in 2024

SAF-HOLLAND SE sees decline in earnings and revenues for fiscal 2024. The company reported a 3.2% drop in net income and an 11% drop in sales, primarily due to weak demand, impacting stock prices moving forward.

Date: 20-03-2025

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SAF-HOLLAND's reported net income for fiscal 2024 was 77.35 million euros, marking a decrease of 3.2% from the previous year's 79.93 million euros. This directly impacts the company’s earnings per share (EPS), which fell to 1.70 euros per basic share, down from 1.76 euros the year prior.

In terms of adjusted figures, the period's results yielded an adjusted net income of 110.13 million euros or 2.43 euros per share, representing a decrease of 7.1% compared to last year's adjusted figures of 118.49 million euros or 2.61 euros per share.

Sales figures also reflect a concerning trend, with an 11% decline in revenue to 1.88 billion euros from 2.11 billion euros. This decline is attributed to weak customer demand, particularly in the Original Equipment segment in the EMEA and Americas regions. Such a significant drop in revenue growth could negatively impact investor sentiment and the company’s stock price.

Despite these declines, SAF-HOLLAND plans to maintain its dividend at 0.85 euros per share, which may offer some reassurance to investors who value consistent dividends amidst fluctuating earnings.

Looking to the future, SAF-HOLLAND projects consolidated sales between 1.85 billion euros and 2.00 billion euros for fiscal 2025. This outlook includes a modest boost from acquisition-related sales contributions. The adjusted EBIT margin is forecasted to range between 9% to 10%, which indicates a slight improvement despite the previous year's margin of 10.1%.

Overall, while the company’s immediate performance shows several troubling metrics, the future projections offer a tempered optimism that could affect its stock price positively if the anticipated recovery occurs.

Stocks: SFQ.F