EDAG Engineering Group AG: Sustained robust revenue growth and increasing profits after nine months

EDAG Engineering Group AG:
Sustained robust revenue growth and increasing profits after nine months

- Revenue growth of 15.1% in Q3 (+4.8% in Q1-3)

- All three segments growing dynamically in Q3

- Adjusted EBIT margin at 7.6% in Q3 (4.7% in Q1-3)

- Investments in important future areas in implementation

- Upper end of guidance range expected in adjusted EBIT

Arbon, 11. November 2021. EDAG, leading independent engineering services provider to the global automotive industry, published its report on the first nine months of 2021 today. The positive momentum from the second quarter largely continued in the third quarter.

At EUR 506.2 million, revenue in the nine-month period was 4.8 percent up on the previous year's level of EUR 482.9 million. This was materially supported by robust revenue growth of 15.1 percent in the third quarter. Segments Electrics/Electronics and Vehicle Engineering primarily contributed to this growth, posting increases of 10.8 percent and 6.8 percent, respectively, in the first nine months of the year.

Adjusted EBIT increased significantly year-on-year to EUR 23.8 million after nine months (previous year: EUR -7.7 million). Adjusted EBIT margin was 4.7 percent, compared to -1.6 percent in the previous year. All three segments were profitable with a positive adjusted EBIT margin in the second and also in the third quarter.

The continued growth resulted in an increase in working capital and consequently a negative free cash flow of EUR 17.9 million. As of September 30, EDAG had 7,874 employees (previous year: 8,013 employees).

"In the third quarter, we were able to generate very robust revenue growth thanks to the strong order intake of the previous months. Last year's cost optimization measures and the continued expansion of our global service portfolio led to correspondingly solid profits", explains Cosimo De Carlo, CEO of the EDAG Group. "In our outlook for the full-year 2021, we are targeting the upper end of the forecast corridor despite a continued volatile environment."

"With the opening of our new Engineering Hub in Munich and our new test centre in Shanghai, we successfully completed two major investment projects in the third quarter", comments Holger Merz, CFO of the EDAG Group. "To further strengthen our competitive position, we will gradually increase our investments in the coming quarters and thus continue to optimize and expand our digital infrastructure."

Based on the expected continuation of the global economic recovery, revenue is expected to increase in a range of round 3 to 5 percent for the full year 2021.
Adjusted EBIT margin is expected to be at the upper end of the range of round 3 to 4 percent.

This assessment remains largely dependent on further developments in global supply chain disruptions as well as the Corona pandemic. As a globally operating company, the EDAG Group is closely monitoring further developments and is prepared to take all necessary countermeasures in close contact with its customers.

 

About EDAG

EDAG is an independent engineering services provider to the global automotive industry. The company serves leading domestic and international vehicle OEMs and sophisticated automotive suppliers through a global network of about 60 sites in major automotive centres of the world.

EDAG offers complementary engineering services across its Vehicle Engineering, Electrics/Electronics and Production Solutions businesses. Based on these extensive capabilities, EDAG can support clients across the entire value chain from the original design idea to product development and prototype construction all the way to the delivery of turnkey production systems. As a technology and innovation leader, EDAG also operates established centres of excellence that design landmark technologies for future applications in the automotive industry: sustainable vehicle development, safe mobility, digitization, as well as drive- and storage technologies.

In financial year 2020, the company generated revenues of EUR 650 million. As at 31 December 2020, 7,984 employees (including apprentices) worked for EDAG all over the world.

Contacts:

Public Relations
Christoph Horvath
Press spokesman EDAG Group
Phone: +49 (0) 661- 6000 570
Mail: pr@edag.de
www.edag.com
 

Investor Relations
Sebastian Lehmann
Head of Investor Relations
Phone: +49 (0) 611- 7375 168
Mail: ir@edag-group.ag
www.edag.com

 

Forward-looking statements

This release contains forward-looking statements. These statements are based on current estimates and projections of EDAG Executive Board and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not be accurate. Many factors could cause the actual results, performance or achievements of EDAG to be materially different from those that may be expressed or implied by such statements. EDAG does not assume any obligation to update the forward-looking statements contained in this release.