Stabilus Stock: Dividend Cut Despite Revenue Growth

Automotive supplier Stabilus has announced a significant reduction in its dividend payout for fiscal year 2023/24, lowering it to €1.15 per share from the previous year's €1.75. This 34% decrease comes despite a 7.5% revenue increase to €1.31 billion, reflecting the company's mixed financial performance. The dividend adjustment follows a decline in annual profit from €103 million to €72 million, primarily attributed to higher tax expenses and costs associated with the Destaco acquisition. Nevertheless, the planned distribution maintains a 40% payout ratio, reaching the upper end of the company's target range. The company's EBIT margin experienced a slight decrease to 12.0%.

Positive Outlook for 2024/25

Looking ahead, Stabilus maintains an optimistic stance for the current fiscal year 2024/25. The company projects revenue between €1.3 and €1.45 billion, complemented by an adjusted EBIT margin ranging from 11% to 13%. Additionally, Stabilus anticipates free cash flow between €90 and €140 million. These forecasts account for ongoing market volatility while highlighting the company's continued focus on its successful diversification strategy, particularly in its resilient industrial business segment.