EQS-News: JOST started off well the fiscal year 2025 supported by the acquisition of Hyva

JOST started off well the fiscal year 2025 supported by the acquisition of Hyva

• Sales grew due to acquisition: Sales went up by 25% to EUR 374 million (Q1 2024: EUR 299 million)
• Adjusted EBIT increased: Adjusted EBIT grew to EUR 36 million (Q1 2024: EUR 35 million) and adjusted EBIT margin reached 9.6% (Q1 2024: 11.6%)
• Adjusted EPS: Adjusted earnings per share amounted to EUR 1.65 (Q1 2024: EUR 1.70)
• Robust free cash flow: Free cash flow increased to + EUR 44 million (Q1 2024: EUR +35 million)
• Leverage below 2.5x mark: Leverage reaches 2.45x after financing the Hyva acquisition
• Outlook for the 2025 financial year confirmed

 

Neu-Isenburg, May 15, 2025 - JOST Werke SE ("JOST"), one of the world's leading manufacturers and suppliers of safety-related systems for the on- and off-highway commercial vehicle industry, published today its interim report for the first quarter of 2025.

Joachim Dürr, CEO of JOST Werke SE, says: "We have started off well the year 2025. The integration of the Hyva Group into JOST is running at full speed. Customers’ feedback has been very positive, and we were able to sell the first Hyva products through JOST’s sales network faster than expected. Although the market environment remained challenging in the first three months of 2025, JOST performed well, proving its resilience. Overall, the markets in EMEA and APAC developed better than AMERICAS. The additional strength JOST has gained through Hyva in the APAC region supported the good development, opening new doors for us. Our flexibility and local-for-local approach once again proved to be a competitive advantage, allowing us to adapt quickly and effectively to volatile market conditions. I therefore remain confident that we will achieve our forecast for the 2025 fiscal year."
 

Sales and earnings increase

The start to fiscal year 2025 was marked by the closing of the Hyva Group acquisition and its consolidation within JOST as of February 1, 2025. Group sales increased by 25.2% to EUR 373.7 million in the first quarter of 2025 (Q1 2024: EUR 298.5 million). This includes acquisition effects of EUR 103.9 million, which were allocated to the new Hydraulics business line. Adjusted for currency and acquisition effects, Group sales declined by 9.0% compared to the previous year influenced by a challenging market environment in Transport and Agriculture, particularly in North America. Sales in the Transport business line decreased by 9.7% to EUR 204.9 million in the first quarter of 2025 (Q1 2024: EUR 226.9 million). This was primarily due to further reductions in demand for trucks compared to the first quarter of 2024. Sales in the Agriculture business line also went down by 9.3% to EUR 65.0 million in the first quarter of 2025 (Q1 2024: EUR 71.7 million).

Adjusted EBIT increased by 3.2% to EUR 35.7 million in the first quarter of 2025 (Q1 2024: EUR 34.6 million). The adjusted EBIT margin amounted to 9.6% (Q1 2024: 11.6%). This reduction is mainly due to the consolidation of Hyva. JOST has identified annual EBIT synergies of more than EUR 20 million, which have been confirmed and backed with concrete measures during the post-merger integration process. By realizing these synergies, JOST aims to bring Hyva's profitability within the Group's strategic EBIT margin corridor of 10% to 12% two years after closing.

EMEA

In EMEA, JOST increased sales by 15.0% year-on-year to EUR 188.0 million during the first quarter of 2025 (Q1 2024: EUR 163.5 million). This increase is exclusively due to acquisition effects from the consolidation of Hyva amounting to EUR 34.4 million. Adjusted for acquisition and currency effects, sales in EMEA declined by 5.7% year-on-year during the first quarter. JOST experienced a sequential stabilization of demand in the Transport and Agriculture business lines in the region, compared to the second half of the prior year. Nevertheless, production during the first months was still impacted by the cyclical slowdown in the markets compared to the first quarter of 2024. Adjusted EBIT in EMEA decreased to EUR 11.4 million in the first quarter of 2025 (Q1 2024: EUR 14.9 million). The adjusted EBIT margin amounted to 6.1% in the same period (Q1 2024: 9.1%).

AMERICAS

In the AMERICAS segment, sales grew by 8.4% to EUR 98.4 million in the first quarter of 2025 (Q1 2024: EUR 90.8 million). Hyva contributed EUR 22.3 million to sales growth in the region. Adjusted for the acquisition and currency effects, sales in AMERICAS declined by 15.8 %. One driver for the decline in sales was the very weak demand for agricultural components. JOST also experienced a reluctance to buy in the Transport sector, particularly in the truck market, resulting from the uncertainties brought by the US tariff discussions. Nonetheless, JOST was able to increase adjusted EBIT in AMERICAS to EUR 10.6 million in the first quarter of 2025 (Q1 2024: EUR 9.3 million). This increase was supported by the the consolidation of Hyva and the strong development in the aftermarket business. The adjusted EBIT margin in AMERICAS increased to 10.8% in the first quarter of 2025 (Q1 2024: 10.2%).

APAC

In APAC, sales grew by 97.3% to EUR 87.4 million in the first quarter of 2025 (Q1 2024: EUR 44.3 million). Hyva contributed sales of EUR 47.2 million. Adjusted for the acquisition and currency effects, sales in APAC declined by 7.5% in the first quarter of 2025. The main reason for the decrease was the negative market development in India in the Transport business line. The Agriculture business line developed positively, as JOST was able to gain market share in the region after gaining new OEM contracts, thus increasing sales with agricultural components. Adjusted EBIT increased to EUR 12.8 million in the first quarter of 2025 (Q1 2024: EUR 8.5 million). The adjusted EBIT margin amounted to 14.6% (Q1 2024: 19.1%). This development is mainly due to the consolidation of Hyva.

Earnings after taxes

Reported earnings after taxes declined to EUR 13.1 million in the first quarter of 2025 (Q1 2024: EUR 20.0 million) and reported earnings per share amounted to EUR 0.88 (Q1 2024: EUR 1.34). The decline was mainly negatively influenced by one-off exceptionals in connection with the acquisition of Hyva.

Adjusted for exceptionals, earnings after taxes declined slightly by 3.0% to EUR 24.5 million (Q1 2024: EUR 25.3 million). This reduction is primarily attributable to the -9.0% organic sales decline in the first quarter of 2025, which led to a corresponding reduction of adjusted earnings after taxes. The positive adjusted earnings after taxes contribution of the Hyva Group could not be fully offset this organic decline. For this reason, adjusted earnings per share went down slightly by 3.0% to EUR 1.65 (Q1 2024: EUR 1.70).

Net assets and free cash flow

In the first three months of 2025, JOST’s equity remained almost unchanged at EUR 405.6 million (December 31, 2024: EUR 405.5 million). This was due to negative currency translation effects in the valuation of subsidiaries amounting to EUR 15.4 million (mainly USD companies), which could not be fully offset by the achieved earnings after taxes in the first quarter of 2025.

JOST increased its free cash flow (excluding acquisitions) by 26.0% year-on-year to EUR +44.2 million in the first quarter of 2025 (Q1 2024: EUR +35.1 million). The cash conversion rate (ratio of free cash flow to adjusted earnings after taxes) rose sharply to 1.8 and significantly exceeded the target of 1.0 (Q1 2024: 1.4). This improvement was supported by a positive contribution to free cash flow from Hyva, among other things.

Working capital increased significantly by 42.6% to EUR 315.8 million in the first quarter of 2025, compared to the prior year (Q1 2024: EUR 221.5 million). The main reason for this was the first-time consolidation of the Hyva Group and the resulting increase in inventories, trade receivables and trade payables. As a result, the ratio of working capital to last-twelve-months sales went up to 19.1% (Q1 2024: 17.8%). The non-consolidated sales of the Hyva Group during the last twelve months were also included in the ratio calculation to avoid distortions.

Net debt (excl. IFRS 16 liabilities) increased by EUR 324.0 million to EUR 451.5 million as at March 31, 2025, as result of the debt-financing of the Hyva acquisition (December 31, 2024: EUR 127.5 million). Thus, the leverage ratio (ratio of net debt to last-twelve-months adjusted EBITDA) increased to 2.45x as at March 31, 2025 (December 31, 2024: 0.86x). As announced, leverage remained below the 2.5x mark. The non-consolidated portion of the last-twelve-months adjusted EBITDA of the Hyva Group was also included in the calculation to avoid distortions.

Oliver Gantzert, CFO of JOST Werke SE, says: "We had a very promising operational and financial development in the first quarter of 2025. Hyva made a positive contribution to adjusted earnings after taxes just two months after consolidation. This has helped us to keep leverage below the 2.5x mark despite the still challenging market environment. We will build on this to seize the identified synergies and make rapid progress in reducing the Group's debt."

Outlook confirmed

In view of the business performance to date and based on current market expectations, JOST confirms its outlook that Group sales for the 2025 fiscal year will increase by 50% to 60% compared to 2024 (2024: EUR 1,069.4 million). The expected growth will mainly be supported by the consolidation of the acquired Hyva Group, effective as of February 1, 2025.

Adjusted EBIT is expected to increase by 25% to 30% in 2025 compared to the previous year (2024: EUR 113.0 million). Adjusted EBITDA is also expected to grow by 25% to 30% compared to 2024 (2024: EUR 148.1 million).

This forecast is based on the premise that the economic situation in our most important markets will not deteriorate unexpectedly and that the ongoing geopolitical conflicts will not spread beyond their region.

 

The interim report for the first quarter of 2025 is available at http://ir.jost-world.com/reports. The accompanying earnings conference will take place on May 15, 2025, at 10:00 a.m. CEST. After the conference, the recording will be available on the JOST website https://ir.jost-world.com.

 

Contact:
JOST Werke SE
Romy Acosta
Head of Investor Relations
T: +49 6102 295-379
romy.acosta@jost-world.com

 

About JOST: JOST is a world-leading producer and supplier of safety-critical systems for the commercial vehicle industry. Under the umbrella brand of JOST, the comprehensive range of products is categorized into systems for On-Highway (transport industry) and Off-Highway applications (agriculture and construction industries). JOST’s global leadership position is driven by the strength of its brands JOST, ROCKINGER, TRIDEC, Quicke and Hyva, its long-standing client relationships serviced through its global distribution network, and its efficient and asset-light business model. With its five core brands, the company is the global leading producer of fifth wheel couplings, landing gears, agricultural front loaders and front-end tipping cylinders. Since the acquisition of Hyva in 2025, JOST employs over 7,500 staff worldwide, has sales and production sites in more than 35 countries, and operations on six continents. JOST has been listed on the Frankfurt Stock Exchange. Further information on JOST can be found here: www.jost-world.com