Stabilus Stock: Mixed Signals Despite Revenue Growth

Stabilus shares are showing signs of recovery, trading around €25 after plummeting from February highs of nearly €70 to a dismal €18 in early April. The company reported a 7.8% increase in second-quarter revenue to €338 million, though this growth stems almost entirely from the recent Destaco acquisition. When adjusted for acquisition effects and currency fluctuations, Stabilus actually experienced an organic revenue decline of 5.0%, revealing ongoing challenges in its core business. Despite robust performance in the Americas (+16.8%) and EMEA regions (+4.8%), the Asia-Pacific market contracted by 0.7%, contributing to margin pressure.

Profit Concerns Amid Maintained Outlook

While revenue figures impressed, profitability metrics told a different story. Quarterly profit dropped significantly from €18.1 million in the previous year to just €11.2 million, with adjusted operating margin shrinking from 12.4% to 11.2%. Nevertheless, management maintains its fiscal 2025 guidance, projecting revenue between €1.3-1.45 billion and an adjusted operating margin of 11-13%. The company appears to be banking on second-half improvements to compensate for current weaknesses. For investors, the key question remains whether Stabilus can resume organic growth amid challenging market conditions, particularly in the automotive sector.

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Source StockWorld