CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 11 FEBRUARY 2025 AT 7:00 PM EET
Long-term financial targets for Standalone Hiab
Cargotec's Board of Directors has today amended long-term financial targets set for Hiab to reflect the business' standalone future. The financial targets were initially published on 27 May 2024 for Hiab as a business area. As announced on 14 November 2024, Cargotec's Board of Directors is proposing Cargotec's General Meeting of shareholders to be held on 26 March 2025 that the company's name would be changed from Cargotec to Hiab ("Standalone Hiab") as once the transaction to sell the MacGregor business has been closed, Hiab will continue its growth and development as the remaining standalone part of the group.
Cargotec's Board of Directors has set the following financial targets for Standalone Hiab to measure success by 2028:
- Annual sales growth over seven percent over the cycle (unchanged)
- Comparable operating profit 16 percent
- Return on capital employed over 25 percent (unchanged) (1
1) Operative ROCE defined as (Operating profit / Operative capital employed)
Standalone Hiab also aims for a growing dividend of 30-50 percent of EPS and to keep gearing below 50 percent.
In addition to the long-term financial targets, Cargotec's climate target, validated by the Science Based Targets initiative ("SBTi") in 2020, remains valid for the time being. The company is planning to update the climate target for Standalone Hiab and apply its validation from SBTi. The process starts in 2025.
The comparable operating profit target was amended from 18 percent as a business area to 16 percent as a standalone company to reflect increased corporate administrative and support function costs, which were earlier part of Cargotec group's corporate administrative and support functions ("Standalone costs"). In 2024, these Standalone costs were approximately 1.7 percent of sales.
For more information, please contact:
Mikko Puolakka, CFO, tel. +358 20 777 4000
Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670
Cargotec's (Nasdaq Helsinki: CGCBV) Hiab business is a leading provider of smart and sustainable on road load-handling solutions, committed to delivering the best customer experience every day with the most engaged people and partners. The company's continuing operations sales in 2023 totalled approximately EUR 1.8 billion and it employs over 4,000 people. www.cargotec.com
