FORTEC Elektronik (FEV) H2 23/24 earnings summary

Executive summary

• Turnover reached €94.5 million, down 11% year-over-year, but within the revised forecast range.

• EBIT fell 33% to €7.1 million, with the margin dropping from 10.1% to 7.5% due to inflation, higher interest rates, and geopolitical uncertainties.

• Net profit decreased 30% to €5.3 million, and EPS declined from €2.32 to €1.63.

• Dividend remains stable at €0.85 per share, yielding 4.4% based on the June 2024 share price.

• Order backlog normalized to €53.4 million, down from €83.0 million.

Financial highlights

• Revenue: €94.5 million (previous year: €105.9 million), at the lower end of the adjusted forecast.

• EBIT: €7.1 million (previous year: €10.7 million), EBIT margin at 7.5% (previous year: 10.1%).

• Net income: €5.3 million (previous year: €7.6 million), return on sales after taxes at 5.6%.

• Gross margin improved to 34.4% from 33.3% year-over-year.

• Cash and cash equivalents increased to €22.3 million (previous year: €13.2 million).

Outlook and guidance

• Moderate turnover growth expected for 2024/2025, with revenue guidance of €95–110 million and EBIT of €6–8 million.

• Upward movement anticipated in the data visualisation segment, sideward movement in power supplies.

• Further increases in service and personnel costs expected, with profitability dependent on economic conditions and price adjustments.