DMG MORI AG reports good results for FY 2024
- Order intake amounts to € 2,256.6 million (-13 %; previous year: € 2,583.6 million)
- Sales revenues total € 2,228.3 million (-11 %; previous year: € 2,498.6 million)
- EBIT rises to € 245.4 million (+7 %; previous year: € 228.9 million)
- EBIT margin improves to 11.0 % (previous year: 9.2 %)
- Free cash flow reaches € 117.0 million (+25 %; previous year: € 93.5 million)
CEO Alfred Geißler: “DMG MORI AG can look back on an eventful financial year 2024 – on the one hand characterized by ongoing geopolitical uncertainties and conflicts, and on the other hand by increasing customer demands for new technologies. Our main task was and remains to support our customers in this process with the right solutions for their individual needs and to take their production to the next level. To achieve this, we have consistently pursued our MX – Machining Transformation strategy and were thus able to close the financial year 2024 on a solid footing.”
Order intake
In 2024, the global market for machine tools continued to be characterized by the war in Ukraine, ongoing geopolitical uncertainties and the associated economic restraint. Demand for capital goods remained subdued. In this challenging market environment, DMG MORI AG achieved a solid order intake of € 2,256.6 million (-13 %; previous year: € 2,583.6 million). Domestic orders were € 829.8 million (previous year: € 858.6 million). International orders amounted to € 1,426.8 million (previous year: € 1,725.0 million). The international share thus was 63 % (previous year: 67 %).
Sales revenues
Sales revenues were at € 2,228.3 million (-11 %; previous year: € 2,498.6 million). Domestic sales revenues amounted to € 910.0 million (previous year: € 901.0 million). International sales revenues totaled € 1,318.3 million (previous year: € 1,597.6 million). The export share was 59 % (previous year: 64 %). The decline in order intake was the main factor influencing the development of sales revenues. In addition, delays in machine deliveries occurred during the course of the year. Reasons for this include the longer processing times for export licenses.
Results of Operations, Financial Position and Net Worth
The results of operations developed as follows: EBITDA amounted to € 326.0 million (previous year: € 303.3 million). EBIT rose by +7 % to € 245.4 million (previous year: € 228.9 million). The EBIT margin improved to 11.0 % (previous year: 9.2 %). EBT amounted to € 254.7 million (previous year: € 237.6 million).
Income taxes amounted to € 75.3 million (previous year: € 65.6 million). This results in EAT from continuing operations of € 179.4 million (previous year: € 172.0 million). The deconsolidation of our production company in Russia and the subsequent decision by the Executive Board to discontinue our “ECOLINE” product line resulted in EAT from discontinued operations of € -91.9 million (previous year: € -8.8 million). Accordingly, the EAT of the DMG MORI AG group amounted to € 87.5 million (previous year: € 163.2 million).
The financial position developed solidly. Free cash flow rose by +25 % to € 117.0 million (previous year: € 93.5 million).
Employees
As at December 31, 2024, the group had 7,498 employees, thereof 265 trainees (31 Dec. 2023: 7,515). Personnel expenses decreased to € 614.8 million (previous year: € 631.6 million). The personnel ratio increased to 27.9 % (previous year: 24.4 %) with a lower total work done and a slight increase in the number of employees.
Research and Development
The purpose of our research and development is to sustainably increase the value of our products for our customers. We further strengthened and expanded our diversified product portfolio, which now includes around 200 different machine models, with new products in the reporting year, including the new CLX 550 TC, the DMU 85 monoBLOCK 2nd generation and the LASERTEC 30 SLM 3rd generation. In total, we presented 34 innovations together with our group parent company DMG MORI COMPANY LIMITED in 2024 – 20 world premieres, two automation products, five digital innovations, one technology cycle, three DMG MORI components and three innovations for reducing the energy consumption of our machines.
Forecast 2025
2025 is expected to remain volatile. The cautiously optimistic growth forecasts for the global economy and machine tool consumption are offset by geopolitical uncertainties, ongoing conflicts and subdued demand for capital goods.
Nevertheless, we have good reasons to look ahead positively: we are solidly positioned, have high levels of resilience and innovative strength, qualified employees and a strong network of customers, partners and suppliers. We will continue to strengthen and expand our diversified product portfolio. We will also continue to invest in our locations. The focus here, for example, is on the training center in Pfronten, the introduction of SAP S/4HANA in Seebach, and modernization and expansion in Bielefeld and Stipshausen.
For the financial year 2025, DMG MORI AG is planning for an order intake between € 2.4 billion and € 2.5 billion. Sales revenues are expected to be between € 2.2 billion and € 2.3 billion. We forecast EBIT of between € 150 million and € 160 million. Free cash flow should be between € 110 million and € 130 million. The effects of a possible compensation from the investment guarantee for our production plant in Ulyanovsk, the amount of which cannot be estimated at present, are not included in the forecasts.
DMG MORI AKTIENGESELLSCHAFT
The Executive Board
Disclaimer, Forward-looking statements
Company Profile // DMG MORI AG
DMG MORI is a leading global manufacturer of high-precision machine tools and is represented in 44 countries – with 124 sales and service locations, including 17 production plants. In the “Global One Company”, more than 13,500 employees are driving the development of holistic solutions in the manufacturing industry. Our portfolio covers sustainable manufacturing solutions based on the technologies Turning, Milling, Grinding, Boring as well as Ultrasonic, Lasertec and Additive Manufacturing. With technology integration, end-to-end automation and digitization solutions we make it possible to increase productivity and resource efficiency at the same time.
Forward-looking statements //
This (press) release contains forward-looking statements, which are based on current estimates of the management regarding future developments. Such statements are based on management's current expectations and certain assumptions. They are subject to risks, uncertainties and other factors, as well as to the effects of the war in Ukraine or other geopolitical conflicts, that could cause the actual circumstances, including the results of operations, financial position and net worth of DMG MORI AKTIENGESELLSCHAFT, to differ materially from or be more negative than those expressly or implicitly assumed or described in these statements. The business activities of DMG MORI AKTIENGESELLSCHAFT are subject to a range of risks and uncertainties, which may likewise render a forward-looking statement, estimate, or forecast inaccurate.
Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results expressed, expected, anticipated, intended, planned, aimed at, estimated, projected or implied in these statements. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.
There are two companies using the name “DMG MORI”: DMG MORI AKTIENGESELLSCHAFT with registered office in Bielefeld, Germany, and DMG MORI COMPANY LIMITED with registered office in Tokyo, Japan. DMG MORI AKTIENGESELLSCHAFT is an affiliated company of DMG MORI COMPANY LIMITED. This release refers exclusively to DMG MORI AKTIENGESELLSCHAFT. If reference is made in this release to the "group" or “DMG MORI AG“, this refers exclusively to DMG MORI AKTIENGESELLSCHAFT and its controlled companies within the meaning of Section 17 of the German Stock Corporation Act (Aktiengesetz – AktG). If reference is made to "DMG MORI" or the "Global One Company", this refers to the joint activities of DMG MORI COMPANY LIMITED and DMG MORI AKTIENGESELLSCHAFT including all subsidiary companies.