Wacker Neuson Group reports strong growth in fiscal 2023, with revenue up sharply by 17.9% to nearly €2,655 million. Earnings before interest and taxes – EBIT - increased even faster at 35.4% to reach just over €273 million. At 10.3%, the EBIT margin was higher than the previous year’s level of 9 percent.
The group said the results puts Wacker Neuson firmly on track to achieve its Strategy 2030. Aligned with ten strategic levers, execution of this strategy is expected to deliver a revenue of EUR 4 billion and an EBIT margin of more than 11% in the long term.
The company noted that fiscal 2023 began with dynamic growth, which increasingly gave way to downward trends across many sectors of the economy in the second half of the year. “Once more, our global teams demonstrated that our experienced and motivated employees are able to achieve extraordinary results for Wacker Neuson Group in challenging times. And all of this against the backdrop of celebrations for our 175th anniversary. This solid foundation will also keep us on course with our Strategy 2030 in the long term.”
Even though the underlying economic conditions are very uncertain at the start of this year, the group said it can use “to further improve structures and flexibility, increase efficiency and actively prepare the next stage of growth”, said Karl Tragl, chief executive of Wacker Neuson Group.
Revenue in Europe (EMEA) increased by 18.3% to €2,022.4 million, driven mainly by the group’s home market of Germany as well as sizeable construction equipment markets in France and Switzerland. On the product side, large stretches of the year saw strong demand for Kramer- and Weidemann-branded compact equipment for the agricultural sector – a market that is less sensitive to economic cycles by comparison. The EMEA region’s share of total revenue increased slightly to 76.2% to solidify its position as the group’s biggest sales market.
Once again, double-digit growth was recorded in the Americas region in the fiscal year under review with a 21.2% increase to €556.5 million. In particular, the US and Canada were the major growth drivers in the region, with strong demand recorded across all sales channels. The region’s share of total revenue increased once more to 21%, up slightly from 20.4%.
At €76 million, revenue in Asia-Pacific fell by 8.9%, while Australia again powered growth in the region. However, this was not sufficient to offset the decline in revenue in other markets, particularly China. Overall, the region thus accounted for 2.9% of the group’s total revenue.
The board expects growth to remain flat or fall slightly in fiscal 2024 – not just in its three reporting regions but also across the three business segments - light equipment, compact equipment and services. For fiscal 2024, the group expects revenue between €2,400 and €2,600 million, with an EBIT margin between 8% and 9%.
Group revenue is expected to recover and profitability is forecast to grow slightly in 2025. Over the longer term, the Wacker Neuson Group believes that global megatrends will continue to provide opportunities for its business model.
