Sto Adjusts 2024 Financial Forecast, Revises Medium-Term Goals

Sto SE & Co. KGaA has revised its financial outlook for 2024, citing challenging conditions in the construction industry. The company now expects a turnover of approximately 1.66 billion EUR, down from the previous forecast of 1.79 billion EUR. Earnings before interest and taxes (EBIT) are projected to be between 62 million EUR and 82 million EUR, significantly lower than the earlier forecast of 113 million EUR to 138 million EUR.

The adjustment comes as a result of reduced construction activity in key markets, including a 21.5% drop in permits for residential construction in Germany from January to May 2024. Negative weather conditions also impacted business performance in traditionally strong months such as May, June, and July.

Sto's medium-term goals for 2025 and 2027 will not be met. The company had aimed for a 2025 turnover of 1.9 billion EUR and a 2027 turnover of 2.1 billion EUR. However, given the current market conditions, these targets are no longer achievable. An updated forecast is expected by April 2025.