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25.10.2024 18:30:18

EQS-Adhoc: hGears AG adjusts its Full Year 2024 guidance

EQS-Ad-hoc: hGears AG / Key word(s): Change in Forecast
hGears AG adjusts its Full Year 2024 guidance

25-Oct-2024 / 18:30 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


hGears AG adjusts its Full Year 2024 guidance

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No. 596/2014

Schramberg, 25 October 2024 - Based on the most recent order indications and expectations for the business development, the Management Board of hGears AG has adjusted its full year 2024 guidance.

The current business environment is challenging due to the persistently weak economic development and geopolitical uncertainties, as well as the resulting poor consumer sentiment, and has had a negative impact on demand. hGears expects a decline in volumes in the [e]-Mobility business area due to the slowdown in the automotive industry. Meanwhile, destocking is progressing only slowly across the entire value chain in the bicycle industry, which is having a negative impact on the e-Bike business area. By contrast, the e-Tools business area is currently recovering at low levels.

Based on the latest order indicators and the adjusted outlook, hGears now expects revenue for the full year 2024 to be below the previously stated range, resulting in the decision to issue updated guidance. Despite the structural and operational adjustments already made, the lower order volume is adversely affecting operating leverage and is having a negative impact on adjusted EBITDA and free cash flow. As a result, the Management Board now expects the Group to achieve the following results for the full year 2024:

  • Group revenue of EUR 90 - 95 million (previous guidance: EUR 100 - 110 million)
  • Adjusted EBITDA of minus EUR 1 – plus EUR 1 million (previous guidance: EUR 1 – 3 million)
  • Negative free cash flow of EUR 2 - 5 million (previous guidance: negative free cash flow of EUR 0 - 3 million)

Within the context of the ongoing challenges in the market environment, hGears will continue to prioritise efficiency improvements while adapting its cost structures to current conditions. The focus will remain on gaining new customers and developing the sales pipeline as well as improving the utilisation of existing facilities and a stringent capital allocation process.

The company will publish its results for the first nine months of 2024 as planned on 7 November 2024.

 

Contact

 

hGears AG

Christian Weiz

Brambach 38

78713 Schramberg

 

T: +49 (7422) 566 222

E: Christian.Weiz@hgears.com

 

About hGears

hGears is a global manufacturer of mission-critical high-precision gears and components with a focus on products for e-mobility applications. The Company’s strategic focus is on the e-Mobility business area, where products include gears, shafts, and other mission-critical components to be used in electrical drive applications for e-bikes and electric and hybrid vehicles. In the e-bikes segment, hGears is the European market leader in the supply of high-precision gears and components. This puts the Company in a good position to capitalize on the growing end-markets for e-bikes and electric and hybrid vehicles. hGears has three distinct business areas for which it develops and manufactures high-precision components: e-Bike, [e]-Mobility (i.e. for premium and luxury cars, EHVs and powersports vehicles) and e-Tools.

hGears combines over 65 years of experience in advanced machined steel metal processing and state-of-the-art powder metal production. It is one of the few companies offering customers both processes worldwide. hGears works together with its customers in a “co-development” role to design components and find technologically optimal solutions to satisfy the customer’s specifications. hGears’ blue-chip customer base includes several major suppliers (Tier 1) as well as original equipment manufacturers (OEMs). The Company benefits from long, stable and sustainable relationships with its customers and has worked with many key customers for over 15 years.

hGears is headquartered in Schramberg (Germany) and operates globally with production facilities in Schramberg (Germany), Padua (Italy) and Suzhou (China). Find us on the web: www.hgears.com

 



End of Inside Information

25-Oct-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com


Language: English
Company: hGears AG
Brambach 38
78713 Schramberg
Germany
Phone: +49 (7422) 566 0
Fax: +49 (7422) 566 883
E-mail: info@hgears.com
Internet: https://hgears.com
ISIN: DE000A3CMGN3
WKN: A3CMGN
Listed: Regulated Market in Frankfurt (Prime Standard)
EQS News ID: 2016647

 
End of Announcement EQS News Service

2016647  25-Oct-2024 CET/CEST

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