SAF-HOLLAND Stock: Profit Halves Despite Stable Margins

SAF-HOLLAND, the commercial vehicle supplier, reported concerning first-quarter 2025 results on Thursday, revealing significant challenges across its business lines. Group revenue declined by 11.1% to €449 million compared to the same period last year, with an even steeper 14% organic decrease when excluding currency effects and acquisitions. The downturn affected both the original equipment business, which experienced substantial weakness, and the typically resilient aftermarket segment. Most alarming for investors, the net profit attributable to shareholders plummeted by approximately 50% to around €13 million, prompting an immediate stock price drop of 2.89% to €16.12 in XETRA trading.

Management Maintains Cautious Optimism

Despite the troubling profit decline, SAF-HOLLAND demonstrated notable resilience in maintaining its adjusted EBIT margin at 9.5%, only slightly below the previous year's 9.6%. This margin stability surprised industry analysts who had anticipated worse performance given the challenging market conditions. Management remains confident, reaffirming its full-year 2025 targets and highlighting the company's diversified production network in North America and strong market positions as key factors enabling it to navigate through current market turbulence. The coming months will prove critical in determining whether this optimism is justified amid ongoing uncertainties in global commercial vehicle markets.

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Source StockWorld