EDAG Engineering Group AG: Solid revenue growth and margin improvement after nine months

• Revenue growth of 6.5% to EUR 628.2 million
• EBIT grows by 12.3% to EUR 42.5 million
• Earnings after taxes also up on the previous year at EUR 23.6 million

Arbon, 9. November 2023 EDAG, leading independent development partner for the mobility industry and technology developer for industrial solutions, published its report on the first three quarters of the 2023 financial year today. In a challenging macroeconomic environment, both solid revenue growth and an improvement in the margin were recorded after nine months.

At Group level, revenue of 628.2 million euros was 6.5 per cent above the previous year's level of 589.7 million euros. This growth was primarily driven by developments in the Electrics/Electronics segment, which increased revenue by 16.7 per cent. Vehicle Engineering was able to increase revenue by 3.2 per cent, while Production Solutions remained at the previous year's level.

Group EBIT increased to 42.5 million euros compared to the previous year's figure of 37.9 million euros. Adjusted Group EBIT totalled 41.1 million euros (previous year: 37.5 million euros). The EBIT margin was 6.8 per cent (previous year: 6.4 per cent); the adjusted EBIT margin was 6.5 per cent (previous year: 6.4 per cent).

The increase in the margin is due in particular to the strong third quarter, in which the EBIT margin rose to 8.5 per cent (previous year: 6.2 per cent).

The growth in the reporting period led to an increase in working capital in line with expectations. This resulted in a negative free cash flow of 27.7 million euros (previous year: -11.5 million euros). As at 30 September, EDAG employed 8,712 people worldwide (previous year: 8,246 employees).

"The pressure to transform and innovate in the mobility sector remains high. Shortening development cycles is therefore becoming increasingly important for our customers. This quarter's solid performance once again confirms our company's ability to offer innovative and comprehensive solutions to shorten time-to-market," explains Cosimo De Carlo, CEO of the EDAG Group. "Efficiency and agility remain essential to keep pace with the rapid changes in the market".

"Against the background of the developments in the first nine months, we can concretise our guidance for the full year and confirm it overall," explains Holger Merz, CFO of the EDAG Group.

"For the 2023 financial year, we expect further growth and stable earnings development. However, this estimate is subject to considerable uncertainties, which arise in particular from the effects of the ongoing geopolitical disputes and inflationary developments, energy price and labour cost developments and the availability of sufficiently qualified personnel. We now expect revenue to grow by around 5 to 6 per cent instead of the previous figure of around 4 to 7 per cent. We are expecting an adjusted EBIT margin of around 6 per cent instead of the previous figure of around 4 to 7 per cent."

About the EDAG Group

The EDAG Group is a globally leading, independent engineering services provider that combines excellent engineering with the latest technology trends. 

With a global network of some 60 branches, the EDAG Group realizes projects in the Vehicle Engineering, Electrics/Electronics and Production Solutions segments. Drawing on more than 50 years of engineering experience, EDAG's proprietary 360-degree development approach has become a hallmark of quality in the holistic development of vehicles and smart factories. The company's interdisciplinary expertise in the areas of software and digitization provides it with crucial skills to actively shape dynamic transformation processes as an innovative partner.  

With an interdisciplinary team of around 8,600 experts, the EDAG Group develops unique mobility and industrial solutions for customers that include the world's leading automotive and non-automotive companies. The company is listed on the stock exchange since 2015 and generated revenues of € 796 million in 2022.  

For more information, see the EDAG Group website: https://www.edag.com

Contacts:

Public Relations

Felix Schuster 
Head of Marketing & Communications   

Mobile:    +49 (0) 173 - 7345473  

Mail:       [email protected] 

www.edag.com

Investor Relations

Sebastian Lehmann  

Head of Investor Relations   

Phone:  +49 (0) 611- 7375 168  

Mobile:    +49 (0) 175- 8020 226

Mail:        [email protected]

www.edag.com

Forward-looking statements

This release contains forward-looking statements. These statements are based on current estimates and projections of EDAG Executive Board and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not be accurate. Many factors could cause the actual results, performance or achievements of EDAG to be materially different from those that may be expressed or implied by such statements. EDAG does not assume any obligation to update the forward-looking statements contained in this release.