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Bergisch Gladbach, 11 November 2024

INDUS grows sales and adjusted EBITA in Q3

- Sales at EUR 1,282.2 million, EBIT at EUR 95.9 million at 9-month stage
- Engineering and Infrastructure make higher income contributions
- Fourth acquisition in 2024: Ship equipment manufacturer DECKMA strengthens Engineering segment

The third quarter of 2024 saw the portfolio companies of stock exchange listed INDUS Holding AG increase their sales and their adjusted EBITA compared to the first and second quarter of the year. “Although the economy remains weak, our Group was able to stay on track and to successfully improve its operating performance over the course of the year,” says Dr. Johannes Schmidt, Chairman of the INDUS Board of Management. At EUR 443.1 million (previous year: EUR 459.7 million), third-quarter sales exceeded the sales generated in the first two quarters of 2024. Operating income (EBIT) amounted to EUR 31.8 million in the third quarter, which was close to the prior year level (EUR 32.1 million). In the scheduled annual impairment test as of 30 September 2024, INDUS recognized impairment losses of EUR 6.7 million on goodwill and intangible assets (previous year: EUR 17.6 million). At EUR 43.7 million in Q3, adjusted EBITA (EBIT plus impairments and PPA depreciation), which is an indicator of the Group’s operating performance, showed a positive trend over the year.

Nine-month sales amounted to EUR 1,282.2 million (previous year: EUR 1,363.8 million), while the Group’s operating income (EBIT) stood at EUR 95.9 million (previous year: EUR 116.9 million). The EBIT margin stood at 7.5% (previous year: 8.6%). The Group’s adjusted EBITA before PPA depreciation and impairments totaled EUR 117.6 million (previous year: EUR 149.2 million). The margin of adjusted EBITA was 9.2% (previous year: 10.9%). “While this is below the previous year’s level, it represents an increase on the first half of 2024 and shows that the portfolio companies adapted well to the difficult external circumstances,” says Schmidt.

Earnings after taxes clearly above previous year

Earnings after taxes increased to EUR 50.0 million (previous year: EUR 43.4 million). Earnings per share of the continuing and discontinued operations rose to EUR 1.89 (previous year: EUR 1.60).

Engineering and Infrastructure make higher earnings contributions; market pressure in Materials

The portfolio companies in the Engineering segment were able to grow their sales and income in the third quarter compared to the previous quarters despite the difficult environment. The segment’s EBIT margin picked up noticeably to 9.0% in Q3. Nine-month sales stood at EUR 418.6 million (previous year: EUR 434.2 million). EBIT amounted to EUR 27.6 million (previous year: EUR 39.7 million). Following the acquisition of AI specialist GESTALT AUTOMATION and of COLSON, a manufacturer of industrial valves for measurement and control engineering, INDUS further strengthened the Engineering segment by acquiring DECKMA in August 2024. As a system supplier of technical marine equipment, DECKMA specializes in lighting and fire alarm systems, corrosion protection technology, and automation solutions for ships.

The portfolio companies in the Infrastructure segment were able to grow their income noticeably in the reporting period in spite of the weak construction activity. Sales totaled EUR 425.2 million (previous year: EUR 444.7 million). The remaining shares in glass fiber infrastructure specialist GRIDCOM were acquired in March 2024. The segment’s EBIT increased to EUR 43.5 million (previous year: EUR 36.9 million), with the EBIT margin climbing to 10.2% (previous year: 8.3%). At EUR 53.2 million (previous year: EUR 48.2 million) and 12.5% (10.8%), respectively, adjusted EBITA and the corresponding margin also clearly exceeded the previous year’s level. Impairment losses of EUR 5.2 million were recognized in the Materials segment. The Board of Management continues to project slightly lower sales for the full year, while EBIT are now expected to increase slightly (previously: strongly), essentially because of the impairment losses recognized. Accordingly, the EBIT margin is expected to amount to between 9% and 11% (previously: 10% to 12%).

Free cash flow as planned

In the first nine months of the year, the INDUS Group generated free cash flow of EUR 71.9 million. As had been expected, this was below the prior year level (EUR 106.1 million) due to the weak market situation and correspondingly reduced business activity. The Board of Management continues to project free cash flow above EUR 110 million for the full year. The equity ratio rose to 37.9% as at 30 September 2024 (31 December 2023: 37.3%).

Cautiously optimistic outlook

The Board of Management continues to project Group sales of between EUR 1.70 billion and EUR 1.80 billion for the full year 2024. The Board now expects operating income (EBIT) to come in at between EUR 115 million and EUR 125 million, essentially due to the impairment losses (previously: EUR 125 million to EUR 145 million). The EBIT margin is still expected to be between 7.0% and 8.0%.

“It is already foreseeable today that the year 2025 will also present us with geopolitical and macroeconomic challenges,” says Dr. Johannes Schmidt. “But we are building on a solid foundation, as has been shown by the third quarter.”

Note:

This press release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of INDUS Holding AG and comprise known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. INDUS Holding AG assumes no obligation to update forward-looking statements.

Axel Meyer

COO Engineering
Axel Meyer (German citizen, born 1968) has been a member of the INDUS Board of Management since October 2017.

Until joining INDUS, he held various management positions at Schuler AG, most recently as Managing Director of Schuler Pressen and Head of the Service Division of the Schuler Group, Goeppingen, Germany.

Previously, Axel Meyer worked as a member of the Board of Management of the international management consultancy IMAGIN Prof. Bochmann AG, Eppstein im Taunus, Germany. He started his professional career in the Schuler Group's Solid Forming Division, initially in global sales and later as Division Manager.

Axel Meyer studied industrial engineering in Germany and the USA and earned a Master of Mergers & Acquisitions (LL.M.) at the Frankfurt School of Finance & Management while working. 

Gudrun Degenhart

COO Materials Solutions
Gudrun Degenhart (German citizen, born 1970) has been a member of the Board of Management of INDUS since October 2023.

She has more than 20 years of experience in the management and development of portfolio companies in Europe, USA and the Asia-Pacific regions.

Before joining INDUS, Gudrun Degenhart was CEO for the German portfolio companies of the international service group ISS. She previously worked for the thyssenkrupp Group, including as CEO of the international business unit for special lifts and as CEO of Materials Western Europe and Asia-Pacific. She gained experience in medium-sized companies as a board member of the construction technology company Schöck.

A graduate in business administration, she began her career by building up the Central and Eastern European activities of the construction specialist Lindner Group. 

Dr. Jörn Großmann

COO Infrastructure
Dr. Jörn Großmann (German citizen, born 1968) has been a member of the INDUS Board of Management since January 2019.

Up until joining INDUS, he worked for the Dutch group Aalberts Industries, with his last position being the sole managing director of Impreglon, Lüneburg, Germany.

He previously held various positions at the Georgsmarienhütte Group, initially becoming managing director of Mannstaedt, Troisdorf, Germany and later managing director of GMH Edelstahl Service Center Burg and GMH Engineering. Before Dr. Großmann became the managing director of Buderus Feinguss, Moers, Germany, he worked as a development engineer and as a technical director for Doncasters Precision Castings, Bochum, Germany.

He studied material sciences and earned a doctorate in the field of natural sciences.

Dr. -Ing. Johannes Schmidt

CEO
Dr. -Ing. Johannes Schmidt (German citizen, born 1961) has been a member of the Board of Management of INDUS since January 2006. He has assumed the position of CEO since July 2018.

Dr. -Ing. Schmidt was previously the sole managing director of ebm-papst Landshut, Germany, a manufacturer of ventilation motors and fans. During his tenure there, his main achievements included advancing the development of new product platforms and the internationalization of production sites.

Dr. -Ing. Schmidt began his career at Richard Bergner, a manufacturer of electrical instruments from Schwabach, Germany. He initially led product development before rising to the position of managing director during his 12 years at the company.

Schmidt, who studied mathematics, gained an engineering doctorate in mechanics from the Technical University of Darmstadt. 

Rudolf Weichert

CFO
Rudolf Weichert (German citizen, born 1963) is the CFO of INDUS.

Before joining the INDUS Board of Management in June 2012, he was a Partner at KPMG for nine years. He spent three of these years in Detroit, Michigan, United States, where he worked mainly with companies in the engineering, and materials trading industries.

Mr. Weichert, who holds a masters degree in business administration, worked for KPMG for about 20 years, primarily in the firm’s Duesseldorf office, where he worked mainly with multinational manufacturing corporations.