EDAG Engineering Group AG
/ Key word(s): Half Year Report
EDAG Engineering Group AG:
Continued growth in all segments - Earnings up significantly in the first half of the year
At 382.2 million euros, revenues were 14.7 percent above the prior-year level of 333.1 million euros. All three segments contributed to the sales growth in the first half of the year; with Electrics/Electronics at 17.1 percent and Production Solutions at 14.2 percent growing even more strongly than Vehicle Engineering at 6.8 percent.
Adjusted EBIT increased significantly from 10.7 million euros to 24.1 million euros due to the overall improvement in capacity utilization and the improved cost structure. This corresponds to an adjusted EBIT margin of 6.3 percent (previous year: 3.2 percent). All three segments were profitable in the first half of the year.
Order intake in the first half of the year was 432.8 million euros, representing a year-on-year increase of 10.9%. The strong growth resulted in an increase in working capital and consequently a negative free cash flow of 18.4 million euros. As of June 30, 2022, the company had 7,997 employees worldwide (previous year: 7,764 employees).
"The current market environment is characterized by high demand for our services. We are able to benefit from this development in all our segments”, explains Cosimo De Carlo, CEO of the EDAG Group. On the other hand, we are keeping a watchful eye on the increasing uncertainty factors for the global economy in order to be able to counteract them with scenario-based action plans if necessary. Overall, we continue to look forward to the second half of the year with cautious optimism, also based on the robust growth in order intake."
For fiscal year 2022, EDAG expects accelerated growth momentum and a positive development in key performance indicators. This assessment is largely dependent on Russia's war of aggression and possible further geopolitical disputes, as well as continuing disruptions to global supply chains and further pandemic developments.
Revenue is expected to grow at the upper end of a range of around 6 percent to 9 percent.
The EDAG Group is the world's largest independent engineering service provider to the global mobility industry. We regard mobility as a fully integrated ecosystem, and offer our customers technological solutions for more sustainable, emission-free and intelligently networked mobility. With a global network of some 60 branches, EDAG provides engineering services in the Vehicle Engineering, Electrics/Electronics and Production Solutions segments.
With our interdisciplinary expertise in the fields of software and digitalization, we possess the key skills to help actively shape the dynamic transformation process the mobility industry is currently undergoing. Digital features, autonomous driving, artificial intelligence, alternative powertrains, new mobility concepts and the vision of a networked smart city have become an integral part of our portfolio. Embedded in EDAG's own 360° degree approach to the development of complete vehicles and production facilities, we are a competent partner for sustainable mobility projects. It is in the DNA of the company to actively shape the future of mobility and transfer new technologies and concepts into series production. Today, EDAG is one of the TOP 20 IT service providers in the German mobility sector.
Our customers include leading international OEMs, tier 1 suppliers and startup companies from the automotive and non-automotive industries, all of whom we serve globally with our workforce of approximately 8,000 experts in 360-degree engineering.
In 2021, the company generated sales of € 688 million. On December 31, 2021, EDAG employed a global workforce of 7,880 (including apprentices).
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.
25.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|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:||1427391|
|End of News||DGAP News Service|
1427391 25.08.2022 CET/CEST