Wacker Neuson shows gradual recovery with Q2 sequential growth
Investing.com -- Wacker Neuson SE (ETR:WAC) reported second-quarter sales of €581 million on Thursday, down 5% year-over-year but up 18% quarter-over-quarter, as the construction equipment manufacturer showed signs of recovery, particularly in its European markets.
The company’s Q2 profitability reached 7.6%, exceeding its full-year target range and demonstrating the positive impact of its efficiency programs.
European revenues, which totaled €463 million (down 1% year-over-year), showed strong sequential momentum with a 24% increase from the previous quarter, supported by strong order intake following the Bauma trade fair.
In contrast, the Americas segment faced continued challenges with revenues declining 18% year-over-year to €107 million, as customers remained hesitant amid political and tariff uncertainties. The APAC region saw revenues fall 28% to €11 million, primarily due to weakened demand in Australia.
Despite these regional challenges, Wacker Neuson confirmed its full-year 2025 guidance, projecting revenues between €2,100-2,300 million and an EBIT margin between 6.5% and 7.5%.
This outlook suggests the company anticipates 9% sales growth in the second half of the year against easier prior-year comparisons, with profitability expected to advance to approximately 8.7% at the mid-point.
The company’s working capital remained at 33% of sales, unchanged from Q1, while free cash flow increased by €19 million year-over-year to €48.3 million.
Management reaffirmed its target to reduce working capital to 30% by year-end while maintaining capital expenditure at approximately €100 million.
Both the construction and agriculture segments showed strong performance in June, providing good visibility for execution in the third quarter and beyond as the company continues its gradual step-up in growth and profitability.
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