Wacker Neuson jumps 7.7% following 1H earnings

Wacker Neuson jumps 7.7% following 1H earnings

Wacker Neuson SE (ETR:WAC) experienced a significant 7.7% increase in its stock price following the release of its first-half (1H) earnings report. The German construction equipment manufacturer reported second-quarter sales of €581 million, a 5% decline year-over-year but a 18% increase quarter-over-quarter. This indicates a gradual recovery in the company's performance, particularly in its European markets [1].

The company's Q2 profitability reached 7.6%, surpassing its full-year target range and demonstrating the positive impact of its efficiency programs. European revenues totaled €463 million, showing a strong sequential momentum with a 24% increase from the previous quarter, supported by robust 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, while the APAC region saw revenues fall 28% to €11 million due to weakened demand in Australia [1].

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%. 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. Management reaffirmed its target to reduce working capital to 30% by year-end while maintaining capital expenditure at approximately €100 million [1].

The stock's performance was also influenced by the company's strong dividend history, which has seen it raise its dividend for four consecutive years. Additionally, the company's strong balance sheet and positive earnings outlook contributed to investor confidence [3].

References:
[1] https://www.investing.com/news/stock-market-news/wacker-neuson-shows-gradual-recovery-with-q2-sequential-growth-93CH-4190745
[3] https://www.investing.com/equities/wacker-neuson-se