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Ad Hoc
Ad hoc announcement pursuant to Art. 53 LR
Phoenix Mecano holds its own in 2024 – Successful start to 2025 – Geopolitical uncertainties overshadow outlook
Phoenix Mecano holds its own in 2024 – Successful start to 2025 – Geopolitical uncertainties overshadow outlook
Phoenix Mecano achieved a solid result in financial year 2024, in a challenging environment. In the first quarter of 2025, the Group saw a slight increase in sales, with a disproportionately high rise in profitability. However, these signs of recovery are being overshadowed by the uncertainties of US tariff policy.
Kloten/Stein am Rhein, 23 April 2025. The Phoenix Mecano Group's consolidated gross sales fell slightly in financial year 2024, from EUR 783.1 million to EUR 779.5 million. In organic, local-currency terms, sales grew by 2.0%.
Operating result
The Group's operating cash flow (EBITDA) fell by 11.8% from EUR 85.3 million to EUR 75.3 million. The operating result (EBIT) excluding special items declined by 12.8% from EUR 59.0 million to EUR 51.5 million, corresponding to an operating margin of 6.6% (previous year: 7.5%).
Result of the period
The result of the period was EUR 36.6 million, down 19.5% from the previous year (EUR 45.5 million). The net margin shrank from 5.8% to 4.7%.
Equity ratio and net indebtedness
The equity ratio remained robust at 46.4% (previous year: 47.3%) and well above the target value of 40%. Following net liquidity of EUR 3.3 million at the end of 2023, net indebtedness rose to EUR 11.1 million at the end of 2024. This corresponds to 3.8% of equity.
Cash flow from operating activities fell to EUR 56.0 million (previous year: EUR 90.0 million). The return on capital employed (ROCE) dropped from 21.9% to 17.1%, remaining above the strategic medium-term target of 15%.
Division performance
In a difficult economic environment, particularly in Europe, sales in the Enclosure Systems division fell by 6.4% to EUR 215.0 million, and by the same amount in organic, local-currency terms. The operating result declined by 17.3% to EUR 28.4 million (previous year: EUR 34.3 million). The operating margin was 13.2% (previous year: 14.9%).
Gross sales in the Industrial Components division declined by 17.2% to EUR 184.6 million. In organic, local-currency terms, sales were down by 13.1%. The significant underutilisation of capacity saw operating profit drop from EUR 24.1 million (including exceptional income of EUR 7.5 million) to EUR 6.9 million.
The DewertOkin Technology Group division was able to market more drive and mechanism technology as a package and increased gross sales by 12.1% to EUR 370.5 million. In organic, local-currency terms, the growth was 14.3%. This increase in sales combined with subsidies linked to investments in the new industrial park in Jiaxing led to a significant improvement in operating result, which stood at EUR 23.6 million (previous year: EUR 7.2 million, including exceptional expenses of EUR 4.4 million).
First quarter of 2025: encouraging signs despite declines in incoming orders
While the Enclosure Systems division saw sales fall again slightly in the first quarter of 2025, the Industrial Components division returned to growth. The DewertOkin Technology (DOT) Group division continued its growth trajectory, posting a further increase in sales.
The Phoenix Mecano Group's gross sales returned to modest growth in the first quarter of 2025, rising by 2.7% to EUR 196.7 million (1.3% in organic, local-currency terms).
By contrast, incoming orders declined by 2.1%, falling from EUR 198.6 million to EUR 194.5 million. In organic, local-currency terms, they were down by 3.3%. The book-to-bill ratio in Q1 2025 was 0.99 (previous year: 1.04). A book-to-bill ratio of over 1 was achieved in key industrial business areas.
The operating result climbed by 8.9% to EUR 13.5 million, which corresponds to an operating margin of 6.9% (previous year: 6.5%). The result of the period was up by 23.9% to EUR 10.1 million (previous year: EUR 8.2 million).
In the Enclosure Systems division, gross sales in Q1 2025 fell by 3.0% (3.4% in organic, local-currency terms) to EUR 55.8 million. The operating result declined from EUR 8.1 million to EUR 7.4 million, while the operating margin stood at 13.2%. While demand for explosion-proof enclosures and industrial PCs remained strong, demand for electronic enclosures weakened.
Gross sales in the Industrial Components division rose by 6.3% to EUR 49.9 million (2.4% in organic, local-currency terms). The division's result of the period increased by 20.8% to EUR 4.1 million (previous year: EUR 3.4 million), corresponding to an operating margin of 8.3%.
In the Automation Modules business area, there was still no sign of a turnaround in the downward trend, whereas demand in the Electrotechnical Components business stabilised at a low level. Demand for current measuring systems, transformers and instrument transformers in the Measuring Technology business area grew dynamically in the first quarter of 2025, driven by the decarbonisation-related expansion of electricity infrastructure. With a high level of orders on hand and sustainable growth drivers, this business area offers excellent medium- and long-term growth prospects.
The DewertOkin Technology Group division saw its gross sales grow by 4.8% to EUR 88.1 million. In organic, local-currency terms, the growth was 3.8%. The operating result rose to EUR 2.8 million (previous year: EUR 2.4 million), corresponding to an operating margin of 3.2%.
As usual, the positive development in the first quarter was marked by seasonal effects around the Chinese New Year holiday. More recently, the uncertainty surrounding US trade policy has had a direct impact on the long-term planning and short-term ordering behaviour of major customers. Together with its customers, the DOT Group is currently reviewing adjustments along its global supply chains and implementing targeted network optimisations.
Proposals to the Shareholders' General Meeting
The Board of Directors will propose to the Shareholders' General Meeting of 22 May 2025 that the dividend be increased by CHF 1.00 to CHF 19.00 per share (previous year: ordinary dividend of CHF 18.00 plus special dividend of CHF 12.00).
The share buy-back programme launched in November 2023 will continue unchanged, within the scope permitted by SIX Swiss Exchange.
Outlook
The first quarter saw initial signs of an economic recovery in the key European markets, but these were dampened by the sudden introduction of new US trade tariffs. The Phoenix Mecano Group generates well below 10% of its sales in the USA and therefore has only limited direct exposure to these trade barriers.
The indirect effects on Phoenix Mecano customers who sell their products to the US market are more significant and are virtually impossible to quantify at this time. This applies particularly to DOT Group customers whose main sales market is the USA. Higher consumer prices as a result of tariffs could curb demand for electrically adjustable comfort furniture.
The Phoenix Mecano Group has repeatedly demonstrated that it can act with resilience and adaptability even in the face of economic headwinds and global supply chain crises. Its fundamental growth drivers – industrial automation, decarbonisation of the economy and demographic change – will remain intact in the long term. Thanks to its global production network, the Group is able to respond flexibly to changing customer needs and new requirements relating to local value added.
In view of the ongoing uncertainties linked to the reignited trade war and its potential global impact, Phoenix Mecano will not be issuing guidance for financial year 2025 at this time. Provided the general conditions stabilise, it will issue guidance with the half-yearly results.
Link to the 2024 annual report:
https://www.phoenix-mecano.com/en/annual-reports/
Link to the presentation on financial year 2024 and Q1 2025:
https://www.phoenix-mecano.com/en/investor-relations/presentations
About Phoenix Mecano
The Phoenix Mecano Group is a global player in the enclosures and industrial components segments and is a leader in many markets. Headquartered in Stein am Rhein, Switzerland, the Group employs around 7,000 people worldwide and generated sales of EUR 779.5 million in 2024. It is geared towards the manufacture of niche products and system solutions for customers in the mechanical engineering, measurement and control technology, medical technology, aerospace technology, alternative energy, and home and hospital care sectors. Phoenix Mecano was founded in 1975 – 50 years ago this year – and has been listed on the Swiss stock exchange since 1988.
For more information, please contact:
Phoenix Mecano Management AG
Dr Rochus Kobler, CEO
Lindenstrasse 23, CH-8302 Kloten
Tel.: +41 (0)43 255 4 255
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Results Q1 2025 (in EUR million) |
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1-3 2024 |
1-3 2025 |
in % |
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Incoming orders |
198.6 |
194.5 |
-2.1 |
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Gross sales |
191.5 |
196.7 |
2.7 |
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per division: |
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Enclosure Systems |
57.5 |
55.8 |
-3.0 |
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Industrial Components |
46.9 |
49.9 |
6.3 |
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DewertOkin Technology Group |
84.1 |
88.1 |
4.8 |
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Other |
3.0 |
2.9 |
-2.1 |
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Net sales |
189.1 |
195.0 |
3.1 |
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Operating cash flow |
18.0 |
19.4 |
7.6 |
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Margin |
9.4% |
9.9% |
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Operating result |
12.4 |
13.5 |
8.9 |
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Margin |
6.5% |
6.9% |
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per division: |
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Enclosure Systems |
8.1 |
7.4 |
-8.7 |
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14.1% |
13.2% |
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Industrial Components |
3.4 |
4.1 |
20.8 |
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7.3% |
8.3% |
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DewertOkin Technology Group |
2.4 |
2.8 |
15.8 |
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2.9% |
3.2% |
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Other |
-1.5 |
-0.8 |
45.8 |
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Result of the period |
8.2 |
10.1 |
23.9 |
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Margin |
4.3% |
5.2% |
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