Stabilus Stock: Mixed Q1 Results Drive Market Volatility

Stabilus, the automotive and industrial supplier, reported a complex financial picture in its first quarter, with total revenue climbing 6.7% to €326 million. However, this growth primarily stemmed from the integration of recently acquired US industrial service provider Destaco, as organic revenue actually declined by 5.8%. Despite challenges in the Asia-Pacific region, where demand for premium vehicle comfort features weakened, the company managed to boost its adjusted EBIT by 13.5% to €37.8 million. Net profit showed improvement, reaching €14.3 million compared to €12.2 million in the previous year's quarter. The company maintains its annual forecast, projecting revenue between €1.3 and €1.45 billion with an operating margin of 11-13%.

Market Response

The quarterly results triggered significant market volatility, with the stock initially dropping more than 6% before staging a remarkable recovery to become one of the SDax's top performers. Analysts remain optimistic despite the organic revenue decline, particularly in the Powerise segment, with some maintaining their buy recommendations. Management's confidence in second-half performance improvements, supported by strategic expansion through the Destaco acquisition, has helped stabilize market sentiment.