SHERIDAN, WYOMING – August 26, 2024 – Amidst a challenging economic landscape, technotrans, a global technology and services company specializing in thermal management solutions, has reported a significant increase in profitability in the second quarter of 2024. The company's strategic focus on its "ttSprint" efficiency program and robust order backlog positions it for continued growth in the second half of the year, solidifying its positive outlook for 2024 and beyond.
Q2 2024 Performance Highlights
- Noticeable Catch-Up Effect: technotrans delivered a strong second quarter with an EBIT margin of 6.2%,showcasing a significant rebound from Q1 (0.7%).
- Resilience Amidst Challenges: Despite a year-on-year revenue decline of 12.9% in the first half of 2024,attributed to a cautious investment climate, the company's EBIT margin adjusted for one-off expenses reached a healthy 4.2%.
- Energy Management Segment Shines: The Energy Management segment bucked the trend, achieving impressive revenue growth of 26% year-over-year, driven by high demand for thermal management systems in rail vehicles and e-mobility charging infrastructure.
- Strong Order Backlog: technotrans enters the second half of 2024 with a robust order backlog of €84 million,signaling positive momentum for future revenue and earnings.
CEO's Perspective
Michael Finger, CEO of technotrans SE, expressed confidence in the company's performance and outlook: "technotrans significantly increased its profitability in the second quarter of 2024 despite the weak economy. We therefore remain on track in the first half of the year in terms of our revenue and earnings expectations. This reflects the positive effects of the ttSprint efficiency program, which we are systematically driving forward. In addition, significant new orders acquired this year underline the promising outlook for technotrans."
Strategic Focus and Growth Drivers
- Efficiency Program on Track: The "ttSprint" efficiency program, launched earlier this year, is progressing according to plan, with all milestones for the first half of 2024 successfully achieved. The transformation to a market-oriented target structure is expected to be completed in the second half of the year, further streamlining operations and enhancing profitability.
- New Major Orders: technotrans has secured significant new orders in the Energy Management segment,including a series production order for battery thermal management systems (BTMS) from a leading European electric bus manufacturer and an initial order for a liquid cooling system for data centers. These wins underscore the company's growing presence in key growth markets.
- Print Segment Poised for Growth: Positive reports from major printing press manufacturers at the drupa trade fair suggest an anticipated upturn in revenue for the Print segment in the second half of 2024.
Reaffirmed Guidance and Mid-Term Targets
Based on the strong Q2 performance, healthy order backlog, and progress with the efficiency program, the Board of Management has reaffirmed its guidance for the 2024 fiscal year. The company expects to achieve Group revenue between €245 million and €270 million with an EBIT margin of 5.5% to 7.5%.
Furthermore, technotrans remains committed to its mid-term targets for 2025, aiming for revenue between €265 million and €285 million and an EBIT margin of 9.0% to 12.0%.
Looking Ahead
Michael Finger emphasized the company's ability to navigate economic challenges: "We are countering the weak economy with a sound business model, a clear strategy, financial stability and a highly motivated team. With our ttSprint efficiency program, we are also sustainably reducing our structural costs. This will enable us to achieve our targets for 2024 and 2025 even under difficult economic conditions."
technotrans' strategic initiatives, coupled with its strong market position and focus on innovation, paint a promising picture for the company's future growth and success.
About technotrans SE
technotrans SE is a global technology and services company specializing in application-specific thermal management solutions. The company's core expertise lies in optimizing energy consumption and controlling temperatures in sophisticated technological applications. With 17 locations worldwide, technotrans serves a wide range of industries,including plastics, energy management, healthcare & analytics, print, and laser. The company is listed in the Prime Standard and employs around 1,500 people globally.