German construction equipment maker Wacker Neuson narrowed its annual operating margin guidance to 7–7.5 percent on November 12, retaining its revenue range. Third-quarter sales and operating profit increased. Management described stronger US demand but subdued conditions in German-speaking European markets, and reduced planned investment as nine-month free cash flow improved.
German construction equipment manufacturer Wacker Neuson lowered the upper end of its annual operating margin outlook on November 12.[1], [2]
It now expects 7–7.5 percent. Management retained revenue guidance of 2,300–2,400 million euros and lowered expected investment from 70–90 million euros to approximately 70 million euros. The revised outlook incorporates mixed market conditions and positive and negative one-off quarterly effects.[1]
Third-quarter revenue increased 7.2 percent to 589.7 million euros. Earnings before interest and tax rose 10.4 percent to 45.6 million euros, taking the operating margin from 7.5 percent to 7.7 percent. Net profit increased from 26.7 million euros to 29 million euros. The company said US tariff refunds offset one-off expenses for cost optimisation. Nine-month operating profit rose 54.3 percent to 150.3 million euros.[1]
Wacker Neuson reported stronger demand in the US and improvements in France and the United Kingdom, while Germany, Austria and Switzerland remained subdued. Nine-month revenue in the Americas increased 16.8 percent to 376.5 million euros. The company’s free cash flow rose from 115.8 million euros to 127 million euros. Net working capital relative to trailing annual revenue declined to 28.2 percent, below the company’s 30 percent objective.[1]
