EDAG Engineering Group AG:
- Revenue growth of 26.6% in Q2 (+0.2% in H1)
- Adjusted EBIT margin at 5.2% in Q2 (3.2% in H1)
- All three segments profitable in Q2
- Order intake of EUR 390.2 million in H1
- International revenue share above 44 percent
Arbon, 26. August 2021. EDAG, leading independent engineering services provider to the global automotive industry, published its report on the first half of 2021 today. Business development in the reporting period was characterized by a market recovery with increasing momentum. In the second quarter in particular, all key performance indicators were clearly positive.
At EUR 333.1 million, Group revenue was 0.2 percent above the previous year's level EUR 332.5 million. While a decline in revenue was recorded in the first quarter, the second quarter saw a significant increase in revenue of 26.6 percent compared to the same quarter of the previous year. The segments Electrics/Electronics (+7.0 percent) and Vehicle Engineering (+1.9 percent) contributed to the revenue growth in the first half of the year; in Production Solutions, the decline in revenue was limited to 5.2 percent. The encouraging momentum in this segment was also evident in the second quarter, with revenue up by 28.3 percent.
Adjusted EBIT increased significantly from EUR -14.9 million in the previous year to EUR 10.7 million due to an improved cost structure and better capacity utilization overall. This corresponds to an adjusted EBIT margin of 3.2 percent (previous year -4.5 percent). All three segments were profitable in the second quarter with a positive adjusted EBIT margin.
Order intake in the first half of the year was EUR 390.2 million, an increase of around 6 percent over the previous year's figure. As a result, the order backlog rose to EUR 392.0 million as of June 30 (previous year: EUR 332.3 million). The strong growth resulted in an increase in working capital and consequently a free cash flow of EUR -31.3 million. As of June 30, EDAG had 7,764 employees (previous year: 8,089 employees).
"We are currently observing a steady growth dynamic and thus also a significant increase in capacity utilization in our market. In the first half of the year, we generated more than 44 percent of our revenue with customers outside Germany; however, we are also noticing a clear revival of the market in Germany. After a few challenging months, we are thus on a path of successive revenue and earnings improvements with our Group", explains Cosimo De Carlo, CEO of the EDAG Group. "Despite remaining risks, we can thus expect additional revenue contributions in the second half of the year."
Based on the expected continuation of the global economic recovery, revenue is expected to increase in a range of round 3 to 5 percent for the full year 2021.
This assessment remains largely dependent on further pandemic developments. The EDAG Group, as a globally operating company, is closely monitoring further developments and is prepared to promptly take all necessary countermeasures in close contact with customers.
EDAG is an independent engineering services provider to the global automotive industry. The company serves leading domestic and international vehicle OEMs and sophisticated automotive suppliers through a global network of about 60 sites in major automotive centres of the world.
EDAG offers complementary engineering services across its Vehicle Engineering, Electrics/Electronics and Production Solutions businesses. Based on these extensive capabilities, EDAG can support clients across the entire value chain from the original design idea to product development and prototype construction all the way to the delivery of turnkey production systems. As a technology and innovation leader, EDAG also operates established centres of excellence that design landmark technologies for future applications in the automotive industry: sustainable vehicle development, safe mobility, digitization, as well as drive- and storage technologies.
In financial year 2020, the company generated revenues of EUR 650 million. As at 31 December 2020, 7,984 employees (including apprentices) worked for EDAG all over the world.
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.
End of Media Release
Issuer: EDAG Engineering Group AG
Key word(s): Services
|Company:||EDAG Engineering Group AG|
|Phone:||+41 71 54433-0|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart|
|EQS News ID:||1228877|
|End of News||DGAP Media|