Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mutares SE & Co KGaA (XTER:MUX) reported a significant increase in group revenues to EUR5.3 billion for 2024, with a guidance of EUR6.5 billion to EUR7.5 billion for 2025.
• The company successfully completed 13 acquisitions in 2024, including strategic additions like Magirus and Buderus Edelstahl, which are performing above expectations.
• Mutares SE & Co KGaA has a strong global presence, with new offices opened in Chicago, Shanghai, and Mumbai, enhancing its international footprint.
• The company has a robust pipeline of divestments, with several transactions expected to materialize in Q2 2025, indicating a strong potential for future cash inflows.
• Mutares SE & Co KGaA maintains an attractive dividend strategy, with a minimum dividend of EUR2 per share, reinforcing its commitment to shareholder returns.

Negative Points

• The company faced challenges with the consolidation of Zanneca, leading to delays in publishing final audited financial statements.
• The automotive and mobility segment experienced significant headwinds, with a reduction in call-offs from OEMs impacting performance.
• Adjusted EBITDA saw a setback compared to 2023, primarily due to negative contributions from recent acquisitions.
• The retail and food segment remains challenging, with cautious consumer spending and a need for strategic reassessment.
• The construction business within the engineering technology segment is struggling, requiring significant efforts to ramp up capacity and improve profitability.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with XTER:MUX.

Q: Can you provide more details on the preliminary financial statements and the challenges faced with the Zanneca acquisition? A: Mark Friedrich, CFO, explained that the preliminary financial statements were published due to complex auditing requirements related to the Zanneca acquisition. The company discovered post-acquisition that they had no control over Zanneca, leading to its exclusion from consolidated financial statements. This decision was agreed upon with auditors after extensive discussions.

Q: How are the recent acquisitions, such as Magirus and Buderus Edelstahl, performing? A: Johannes Laumann, CIO, stated that both acquisitions are developing as expected or slightly above expectations. Buderus Edelstahl, in particular, is benefiting from the defense sector's growth. These acquisitions align with the company's strategy to grow profitably and stabilize the automotive and mobility segment.

Q: What is the outlook for the automotive and mobility segment given the current market conditions? A: Johannes Laumann highlighted the challenges in the automotive sector, including fluctuating tariffs and strategic shifts towards electric vehicles. Despite these challenges, the company has consolidated its position with large groups like Amaneos, enhancing negotiation power with OEMs and stabilizing operations.

Q: Can you elaborate on the company's global expansion efforts? A: Johannes Laumann mentioned the opening of offices in Chicago, Shanghai, and Mumbai, reflecting Mutares' global expansion strategy. The company is actively pursuing opportunities in these regions, with the first deal in the US and India expected soon, leveraging geopolitical shifts as companies exit China and the US.

Q: What are the financial targets and expectations for 2025? A: Mark Friedrich provided guidance for 2025, projecting group revenues between EUR6.5 billion and EUR7.5 billion. The company aims for a net income of EUR130 million to EUR160 million, driven by strategic exits and acquisitions. The focus remains on achieving a EUR10 billion revenue target and maintaining a strong dividend strategy.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.