06.11.2025

Another tough quarter for Hiab

Loader crane and on road handling equipment manufacturer Hiab, now a standalone company, has published its third quarter results with ongoing declines in both sales and profit, although revenue from services continues to grow.

YTD
revenues for the nine months to the end of September were €1.16 billion fell six percent on the same period last year.
This was made up as follows
New Equipment sales: €808 million -9%
Service revenue: €352 million +2%
Total: €1.16 billion – 6%

Order intake was one percent higher at €1.1 billion, but it still left the
Order book 12 percent lower at €557 million made up as follows:
New Equipment: €500 million -9%
Services: €57 million +2%
Total orders: €557 million

Pre-tax Profit for the nine months was seven percent lower at €161.8 million.

Third quarter
revenues for the quarter were 11 percent lower compared to the same quarter last year at €346 million.
This was made up as follows
New Equipment sales: €230 million -17%
Service revenue: €116 million +4%
Total: €346 million – 11%

Order intake declined three percent to €351 million.
Pre-tax profit for the period was 24 percent lower at €389.7 million.

Chief executive Scott Phillips said: “Business has been negatively impacted by the elevated market uncertainty caused by the increased trade tensions. The impacts were particularly visible in the US market, where both our orders and sales decreased. Hence, our comparable operating profit margin decreased to 11.4 percent. On a positive note, we continued to produce strong cash flow. We also closed the sale of MacGregor during the quarter.”

“Our Services business continued to grow, representing 34 percent of the sales in the quarter. Cash generation continued to be strong, and our cash flow from operations before finance items and taxes amounted to €69 million. We target further efficiency improvements to address the market situation”

“We are operating in an attractive market with great long term growth prospects. Our target is to grow above seven percent per annum over the cycle. However, as seen in the order book development, the industry currently faces headwinds which we address by initiating planning of a programme targeting to reach an approximately €20 million lower cost level in 2026 compared to 2025. At the same time, we continue to invest in growth and prioritise our strategic focus areas in key segments, North America, Services, business excellence and M&A. The sale of MacGregor has also resulted in a very strong balance sheet position.”

"Orders received remained stable in an uncertain market environment, decreasing slightly to €351 million. Order intake reflected the continued slow decision making of our US based customers. Orders received grew in EMEA, partly driven by the defence logistics business and a sizeable order from the wind energy segment. Orders received also increased in Asia Pacific."

Vertikal Comment

Another weak report from Hiab, although the services business continues to grow and now exceeds 30 percent of total revenues, which bodes well for the future.

This time last year Hiab’s numbers were better – or less bad - than those of its main competitor Palfinger, but this year it is Palfinger’s turn to do less badly of the two.

Both companies have been hit badly by the slowdown and other challenges in the US market. I would expect the fourth quarter to be roughly the same, but this will change … eventually and Hiab remains well placed to benefit when it does, thanks to a strong balance sheet and growing services business.