Stabilus SE Reports Modest Revenue Growth in Q2 FY2024 Amid Market Challenges

Stabilus SE, a global leader in motion control solutions, recorded a marginal revenue increase of 0.9% reaching €313.5 million in the second quarter of fiscal year 2024, which ended on March 31, 2024. This growth comes despite a challenging global market environment, with significant contributions from the Asia-Pacific (APAC) region, which saw a robust revenue increase of 12.1%. The company's performance in the EMEA region remained stable with a slight increase of 0.2%, while the Americas experienced a revenue decline of 4.1%.

The company's adjusted EBIT for the quarter stood at €38.9 million, a decrease from €40.8 million in the corresponding quarter of the previous year, attributing to a reduced margin of 12.4% compared to 13.1% in Q2 FY2023. This decline in profitability is largely due to elevated material and personnel costs. Additionally, the quarterly profit significantly dropped to €18.1 million from €42.6 million in Q2 FY2023, mainly impacted by the absence of a prior year's positive tax effect.

Furthermore, Stabilus has completed the acquisition of DESTACO, a specialist in industrial automation, expecting it to enhance future revenue streams and earnings. For FY2024, Stabilus anticipates revenues to lean towards the lower end of its €1.4 billion to €1.5 billion forecast, with an adjusted EBIT margin between 13% and 14%. The optimism for a stronger second half of the year remains, supported by historical trends of improved demand in later quarters.