Half Year 2025 Stabilus SE Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Akshat Kacker - JPMorgan - Analyst : Good morning, Michael. Thank you so much for the presentation this morning. I have three questions, please. And if I may, can I just take them one by one? The first one is on tariffs. In terms of trade flows, can you just give us more details on the main components, parts, and materials that drive this gross tariff impact of EUR5 million to EUR10 million, which I believe is on a six- to seven-month basis in this fiscal year? And importantly, how much of this gross impact can you offset by your own procurement actions in terms of looking for alternative sources of supply, please? That's the first question.

Question: Akshat Kacker - JPMorgan - Analyst : Thank you for that. Yes, it does. The second question is on North America. Just broadly, could you please talk about the call-offs in the market that you've seen in the month of April and May and if they are coming in very different from your previous expectations, as we think about your third quarter? And also, what I'm interested in is, like we've heard from US OEMs this reporting season that in the medium term, they will be eventually asking suppliers to move to higher local production. Can you elaborate your discussions that you're having with your customers and if moving Powerise production to the US is one of the many scenarios that you're working with?

Question: Akshat Kacker - JPMorgan - Analyst : Thank you, Michael. Can I ask my third question? Can you still hear me?

Question: Akshat Kacker - JPMorgan - Analyst : The third question is on China, please. How has the market evolved since your full year outlook back in December? Could you give us an update on the pricing pressure from the OEMs? Has it been in line with your expectations? Or has it been higher than what your previous assumptions were? And now given that we are -- we have done the first half of the year, are you leaning towards a certain end of the 15.5% to 17.5% margin range that you had given for the region, please? Thank you.

Question: Akshat Kacker - JPMorgan - Analyst : Thank you so much for the details.

Question: Yasmin Steilen - Berenberg Bank - Analyst : Yeah, many thanks for taking my questions. I have actually three left. So I will also take them one by one. Just a clarification on your guidance. Could you walk us please through your end market regional assumptions in H2? As you already mentioned that US. call-offs are rather flattish and also that you see further deterioration of price erosion at least in the current year. So what's reflected there around, 3.5% top line growth, which is basically implied by the midpoint of the guidance? And how should we expect a sequential EBIT margin improvement in this setup? This is my first question, please.

Question: Yasmin Steilen - Berenberg Bank - Analyst : Perfect. Thanks for the detailed answer. Then just on the cost synergies. So you said you have the finalization of the integration and should not expect any further integration costs. Could you please update on the expected cost synergies and also the timeline?

Question: Yasmin Steilen - Berenberg Bank - Analyst : Perfect. And then with regards to your covenants, I mean, you're already close to 3 times. Are you in discussion with your financing banks about the covenants to get more leeway to your EBITDA covenant level --

Question: Yasmin Steilen - Berenberg Bank - Analyst : Okay perfect. Just a follow-up. Is there any update on the CFO search you're able to share at this point in time?

Question: Yasmin Steilen - Berenberg Bank - Analyst : Okay, perfect. Thanks very much.

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : Yes, good morning and thanks for taking my question. I have one or two left. I think most were answered. I was wondering if you could give us some perspective regarding the - first of all, the Destaco synergies. I was reading the updates that were written when the business was bought. And the mention was there of EUR50 million in revenue synergies by '26 and I think EUR10 million on the cost side. So are those goals now still in place? And do you have new targets for the medium term, let's put it this way on the synergies you can generate? That would be my first question.

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : Okay, well thank you very much for that. My second question relates to your market share in Powerise. I think in Q1, you were mentioning that you currently won tenders, you were more in the region of 35%, 36%. I somehow did not see an update in the latest release. Could you give us maybe a flavor of where it is right now?

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : So these market shares, 35%, 36% in terms of if you include the tenders won, it's still on track, right?

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : Okay. Got it. Yes, correct. And my last question has to do with the - again, going back to the margin - the adjusted EBIT margin in APAC. We saw

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : And sorry, I have one more question regarding your Powerise business and Gas Spring business in Asia. Could you specify how much of the business is exposed to Western OEMs and how much is exposed to local OEMs if you combine all --

Question: Marie Teresa Gruner - Alfres Investment Banking - Analyst : All right, thank you very much. Those were my questions.