Wacker Neuson Reports Significant Drop in Q1 Earnings

Wacker Neuson SE disclosed weaker Q1 results, with earnings per share plummeting by 82.4%. Despite a challenging start to 2025, the company remains optimistic about future growth, reaffirming its 2025 guidance.

Date: 08-05-2025

AI Rating: 4

Performance Overview: Wacker Neuson's first quarter results reveal a drastic decline, with the earnings per share (EPS) dropping 82.4% to 0.06 euros from 0.34 euros in the same quarter last year. This sharp decrease in EPS indicates severe struggles for the company amid weak demand, likely contributing to investor concerns.

Revenue also saw a significant decline, down 16.8% to 493.5 million euros compared to 593.1 million euros in the previous year. Such a drop in revenue can alert investors to potential challenges in market demand and pricing power.

Moreover, EBIT (Earnings Before Interest and Taxes) fell by 67.2% to 12.1 million euros, reflecting a substantial impact on the operating income and raising questions about the company's cost management amidst declining revenues.

Future Outlook: On a more positive note, Wacker Neuson reaffirmed its revenue guidance for fiscal 2025, expecting between 2.10 billion euros and 2.30 billion euros, and an EBIT margin between 6.5% and 7.5%. This stability in forward guidance may suggest that the company's management has confidence in recovering demand, indicating a potential rebound in performance after a tough first quarter.

CEO Karl Tragl's commentary revolves around increased order intake since the beginning of the year and expectations of improved revenue and profitability. While the current metrics are concerning, the management's optimism may bode well for a stabilization in the company's operations moving forward. However, the anticipated recovery in key markets will be critical in shaping investor sentiment.

Stocks: WKC.F