Latest news with #GEAGroupAktiengesellschaft
Business Wire
31-07-2025
- Business
- Business Wire
GEA Raises Forecast for Fiscal Year 2025 and Provides Positive Outlook
DUESSELDORF, Germany--(BUSINESS WIRE)--Due to a very positive operating performance in the first 6 months and expectations for the remainder of the financial year 2025, GEA Group Aktiengesellschaft is raising all guidance parameters based on preliminary figures as follows: Organic sales growth 2 to 4 percent (previously 1 to 4 percent), EBITDA-margin before restructuring expenses 16.2 to 16.4 percent (previously 15.6 to 16.0 percent) and ROCE 34 to 38 percent (previously 30 to 35 percent). The company will publish its complete statement for the 2nd quarter (half-year financial report) on August 7, 2025. 'Our positive development continues. The additional improvements are broad-based, supported by a favorable order situation as well as margin improvements and efficiency gains across the Group. Once again, we are thus demonstrating our strength in executing on our plans,' said GEA CEO Stefan Klebert. Alongside improving the profitability indicators EBITDA margin before restructuring expenses and ROCE, GEA also increased order intake and revenues on an organic basis compared to the prior-year quarter. This was particularly driven by a strong base business. The large order with a volume of between EUR 140 million and EUR 170 million announced by GEA on July 29 will only be booked in the second half of this year. 'Despite the current environment, GEA continues to perform very positively. We anticipate further interesting projects of all sizes in the second half of the year and expect to significantly accelerate our revenue growth in 2026 while further increasing profitability. Against this background, we are confirming our Mission 30 growth and profitability targets,' GEA CEO Stefan Klebert added. NOTES TO THE EDITOR More information about GEA To the GEA Media Center Follow GEA on LinkedIn, YouTube ABOUT GEA GEA is one of the world's largest suppliers of systems and components to the food, beverage and pharmaceutical industries. The international technology group, founded in 1881, focuses on machinery and plants, as well as advanced process technology, components and comprehensive services. For instance, every second pharma separator for essential healthcare products such as vaccines or novel biopharmaceuticals is produced by GEA. In food, every fourth package of pasta or every third chicken nugget are processed with GEA technology. With more than 18,000 employees, the group generated revenues of about EUR 5.5 billion in more than 150 countries in the 2024 fiscal year. GEA plants, processes, components and services enhance the efficiency and sustainability of customers' production. They contribute significantly to the reduction of CO2 emissions, plastic usage and food waste. In doing so, GEA makes a key contribution toward a sustainable future, in line with the company's purpose: 'Engineering for a better world.' GEA is listed on the German MDAX, the European STOXX® Europe 600 Index and is also a constituent of the leading sustainability indices DAX 50 ESG, MSCI Global Sustainability and Dow Jones Best-in-Class World. More information can be found online at pr@
Yahoo
11-04-2025
- Business
- Yahoo
Institutional investors in GEA Group Aktiengesellschaft (ETR:G1A) lost 7.4% last week but have reaped the benefits of longer-term growth
Given the large stake in the stock by institutions, GEA Group's stock price might be vulnerable to their trading decisions A total of 7 investors have a majority stake in the company with 51% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you want to know who really controls GEA Group Aktiengesellschaft (ETR:G1A), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Institutional investors was the group most impacted after the company's market cap fell to €8.4b last week. Still, the 39% one-year gains may have helped mitigate their overall losses. They should, however, be mindful of further losses in the future. Let's delve deeper into each type of owner of GEA Group, beginning with the chart below. View our latest analysis for GEA Group Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that GEA Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see GEA Group's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in GEA Group. Our data shows that Kuwait Investment Authority is the largest shareholder with 11% of shares outstanding. For context, the second largest shareholder holds about 9.7% of the shares outstanding, followed by an ownership of 9.2% by the third-largest shareholder. We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here. The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Public companies currently own 6.9% of GEA Group stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow . If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
GEA downgraded by RBC as restructuring costs cloud growth outlook
-- GEA Group Aktiengesellschaft's (ETR:G1AG) latest earnings report presents a complex picture, balancing strong operational performance with concerns over long-term profitability. RBC Capital Markets has downgraded the stock to 'sector perform' from 'outperform,' citing a challenging path toward its ambitious Mission 30 targets. The price target has been revised down to €52 from €54 . Despite a 60% re-rating over the past year, GEA now trades in line with the industrial sector, reflecting solid business execution and robust cash flow. However, RBC analysts have flagged key concerns that could hinder further revaluation. "The share re-rated by c.60% in the past year and today trades fully in line with our European cap goods coverage. We do not imply that management is over-promising, but rather we see the path towards the Mission 30 targets as rocky," the analysts said. The food processing market remains in a state of stagnation, with volume recovery obstructed by high product prices. Additionally, GEA's internal restructuring efforts, particularly under Mission 26 and Mission 30, are expected to result in higher one-off costs than current consensus estimates suggest. "Also, we argue that consensus' assumption of restructuring costs remaining 2/3 below GEA's 10-year average costs (-40bps vs -130bps) are too optimistic, especially given the upcoming projects that GEA aims to address from 2025 onwards (ERP, streamlining organisation)," RBC added. Fourth-quarter results were mixed. While order intake exceeded expectations and provided a positive highlight, higher restructuring charges and an elevated tax rate led to an earnings miss. Revenue guidance for fiscal year 2025—forecasted at +1-4% organic growth—was also at the lower end of expectations, raising doubts about the feasibility of long-term margin expansion. "We have bigger doubts on the margin targets and stay c.130bps below the 17-19% EBITDA margin target by 2030," the analysts said. RBC has adjusted its financial outlook, reducing FY2025 earnings estimates by 2-7%. Net profit projections have been lowered by 14% to €416 million, trailing consensus by 7%. "As a result, we lower our FY25 net profit assumption by 14% to €416m, trailing consensus by 7%," RBC said. The revision factors in higher restructuring charges, estimated at €40 million, and an increased tax assumption of 29% compared to the previous 23.3%. The brokerage also remains skeptical about GEA's ability to reach its Mission 30 EBITDA margin target of 17-19%, maintaining a forecast that sits 130 basis points lower. RBC believes the stock is fully valued, reflecting current performance and future expectations. "We see no incremental upside and downgrade to Sector Perform with a new PT of €52," the brokerage said. The downgrade reflects the view that restructuring costs, IT investments, and product design modifications—though necessary for long-term efficiencies—will weigh on near-term profitability. The absence of additional upside in the stock's valuation, coupled with execution risks in achieving Mission 30 targets, led to the downgrade. Related Articles GEA downgraded by RBC as restructuring costs cloud growth outlook This is what needs to happen for Sanofi shares to rally in 2025: Goldman Sachs Tele2 considers selling Baltic mobile towers for €500 million - Bloomberg Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
GEA Group's (ETR:G1A) investors will be pleased with their strong 109% return over the last five years
When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, long term GEA Group Aktiengesellschaft (ETR:G1A) shareholders have enjoyed a 83% share price rise over the last half decade, well in excess of the market return of around 2.1% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 43%, including dividends. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. View our latest analysis for GEA Group To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, GEA Group achieved compound earnings per share (EPS) growth of 38% per year. This EPS growth is higher than the 13% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). It is of course excellent to see how GEA Group has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at GEA Group's financial health with this free report on its balance sheet. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for GEA Group the TSR over the last 5 years was 109%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! It's good to see that GEA Group has rewarded shareholders with a total shareholder return of 43% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Is GEA Group cheap compared to other companies? These 3 valuation measures might help you decide. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
