BUY
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Original-Research: Rosenbauer International AG - from NuWays AG
Classification of NuWays AG to Rosenbauer International AG
Turnaround achieved // strong final FY24 results; chg. est. Topic: Rosenbauer released strong final FY24 results in line with preliminary numbers. Not only sales and EBIT reached new record highs, but also free cashflow rose significantly due to improved working capital management. To recap: FY24 sales climbed 22.7% yoy to € 1,306m thanks to a 10% increase in the number of vehicles and a 15% yoy increase of average price per fire truck. Q4 sales rose 27% yoy to € 465m, accounting for 36% of fiscal year sales. In contrast to FY23 and FY22, supply chains returned to normality and did not materially affect the operating business. Order intake increased 18% yoy due to a continued strong demand for Rosenbauer’s firefighting solutions and led to a strong order backlog of € 2,280m (€ 1,788m in FY23). FY24 EBIT increased disproportionately by 73% to € 65m, with a 1.5ppts yoy margin improvement to 5.0%, despite € 4.8m one-time costs, mainly from the implementation of the banking agreement. Q4’24 EBIT rose by 35% yoy to € 36m (7.6% margin). Major contributors to the profitability improvement were price increases during FY22 and FY23 as a response to material cost inflation. Strong FCFF supported by WC reduction: Trade working capital decreased 10% yoy to € 425m despite a significant top-line increase, thanks to Rosenbauer’s “offerto- cash” WC efficiency program and restored supply chains. The trade working capital/ revenue ratio decreased to 32.5% (vs. 44.4% in FY23) and is expected to fall below 30% in FY25e as mentioned in the CC. Overall, FCFF rose to € 47m from € -112m in FY23. Moderate impact from US Tariffs: Although nearly all trucks delivered to US customer are produced by Rosenbauer in the US, production costs could still be impacted by tariffs on steel and aluminum, which is often imported from Canada. On the other hand, fire truck exports from production facilities in the US to Canada could be affected as well (c. € 70m of backlog). Rosenbauer achieved its turnaround and with a record high in order backlog the company is well equipped for future growth. Not only do we expect to see top- and bottom-line to develop nicely in FY25e (eNuW FY25e sales +17% yoy, EBIT +45% yoy), but also cashflows should improve thanks to Rosenbauer’s “offerto- cash” program. Reiterate BUY with a price target of € 55, based on DCF. You can download the research here: http://www.more-ir.de/d/32236.pdf For additional information visit our website: https://www.nuways-ag.com/research-feed Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++
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