EDAG Engineering Group Ltd

Latest Results (23.05.2024):

Revenue Growth

In the third quarter of 2021, EDAG Engineering Group Ltd reported a significant revenue growth of 15.1%, contributing to a 4.8% increase in revenue over the first nine months of the year, reaching EUR 506.2 million. This growth was primarily driven by the Electrics/Electronics and Vehicle Engineering segments.

Adjusted EBIT Improvement

EDAG Engineering Group Ltd saw a substantial improvement in adjusted EBIT, which increased to EUR 23.8 million after the first nine months of 2021, a stark contrast to the EUR -7.7 million recorded in the previous year. The adjusted EBIT margin also improved to 4.7% from -1.6% in the previous year.

Negative Free Cash Flow

Despite robust revenue growth, EDAG Engineering Group Ltd experienced a negative free cash flow of EUR 17.9 million by the end of September 2021. This was primarily due to an increase in working capital associated with the company's continued growth.

Strategic Investments

EDAG Engineering Group Ltd completed significant investment projects in the third quarter of 2021, including the opening of a new Engineering Hub in Munich and a new test centre in Shanghai. These investments are part of the company's strategy to strengthen its competitive position and expand its digital infrastructure.

Future Outlook

Looking ahead to the full year of 2021, EDAG Engineering Group Ltd expects revenue to increase by approximately 3 to 5 percent. The company also anticipates that the adjusted EBIT margin will reach the upper end of the forecast range of around 3 to 4 percent, despite ongoing global challenges such as supply chain disruptions and the impact of the COVID-19 pandemic.