Shares of TKH Group climbed 2% following the release of their fourth-quarter earnings, which exceeded expectations on both revenue and profitability metrics.

Q4 Earnings Highlights: Strong Recovery in Smart Vision & Manufacturing

• EBITA rose 5% YoY to €66.0 million, surpassing analyst estimates of €64.7 million.
• Organic revenue growth of 4.7% was driven by the Smart Vision and Smart Manufacturing segments.
• EBITA margin expanded by 30 basis points to 14.6%, exceeding the anticipated 13.7%.

These results suggest resilient performance despite broader economic challenges, particularly in high-tech sectors.

Full-Year 2024: EBITA Declines but Beats Expectations

While Q4 showed growth, full-year 2024 EBITA declined by 14% to €203.9 million due to:

• A 1.2% organic revenue decline.
• A 90 basis points contraction in EBITA margin to 11.9%.
• Weakness in the Smart Connectivity segment, impacted by destocking issues and delayed facility expansion in Eemshaven.

Despite the YoY decline, TKH outperformed expectations, as analysts had forecasted €202.6 million, and the company's revised guidance was between €200M - €210M.

2025 Outlook: Strong Growth Expected in Smart Vision & Connectivity

Looking ahead, TKH Group is optimistic about 2025, forecasting:

📈 Organic growth in turnover and EBITA.
📈 Consensus estimates project a 21% EBITA increase, reaching €246 million.
📈 Recovery in Smart Connectivity, supported by:

• A strong order book.
• €15 million in expected cost savings.

With the Smart Vision segment continuing to expand, TKH appears well-positioned for a rebound in 2025.

Upcoming Strategy Update on September 25

TKH Group plans to provide a strategy update on September 25, which could offer further insights into growth initiatives, cost optimizations, and expansion plans.

For investors, this could be a key event to watch as the company navigates towards a stronger 2025 performance.

Track TKH Group's Financials in Real-Time

For more insights into TKH's financial performance, check out:

• Balance Sheet Statements API - Get real-time access to financial statements.
• Financial Growth API - Track TKH Group's growth trends and profitability metrics.

With a strong recovery on the horizon, TKH Group remains an interesting stock to watch in 2025!