06.03.2025

A less good year from Palfinger

Austrian crane and aerial lift manufacturer Palfinger has posted its full year results with slightly lower revenues, and a steeper fall in profit.
Total revenues for the 12 months to the end of December were €2.36 billion, down 3.5 percent on 2023.
Lower sales in the European region was partially offset by higher sales in North America and the Marine division, while oddly Palfinger’s business in Russia picked up. The company says that it is run autonomously with all sanctions are adhered to.
Revenues by region
Europe - €1.36 billion (- 6.7%)
North America - €628.8 million +12.4%
South America - €115.9 million (-9%)
CIS - Russia - €124.5 million +8.5%
Asia Pacific - €122.2 million (-9%)

Pre-tax profit plunged 18.2 percent to €142 million, largely due to lower interest income combined with higher interest costs. Net debt at the end of the years was one percent lower at €662 million.

Fourth quarter revenues were four percent lower at €615 million (-4%), although order intake ias said to have picked up strongly, particularly in the core European markets of France, Germany and the Nordic countries.


2025 outlook

Palfinger expects a revenue of €2.7 billion, with earnings of 10 percent and a return on capital employed of over 12 percent. The company said: “Order intake in the European core markets is already recovering, which should also have a positive impact on earnings from the second quarter onwards. The management anticipates that the overall economic environment will continue to improve. The decline in earnings in the first half of 2025 is expected to be significantly compensated in the second half of the year, resulting in a strong year overall, with significant increase in revenues and profitability until 2027.”

The company’s senior management team added: “As anticipated, the year 2024 was filled with challenges, however, it was also a year where optimising working capital, fostering cross country and cross functional collaboration, stringent investment management, and targeted cost reductions proved to be a successful combination of measures."

"By strategically leveraging the benefits of best cost locations and optimising collaboration between our plants, we can gain a competitive edge. This approach includes the new production site in Niš, Serbia, and the investment in a second facility in Slovenia. A stabilisation of global volatility is still not in sight, but there are already signs of recovery in the European core markets.”

Vertikal Comment

While the result is a little lacklustre, to the say the least, it remains the company’s second best year ever, so you can’t really knock it. Especially given the current global uncertainties. It is good to see an optimistic note for both Europe and North America where it still has ample opportunity to increase market share. Its efforts in the aerial lift market are still below par, but its latest new products have serious potential to start transforming the business, while its Marine related business continues to shine.

We would expect the company to achieve somewhere in the region of €2.5 billion in sales this year, based in what it has said and projected.