Germany's WashTec 9M EBIT falls on implementation delays, one-off costs

Overview

• Germany carwash solutions provider's 9-month revenue rose 4.6% yr/yr to €374.5 mln

• EBIT fell 20.7% due to efficiency program delays and one-off organizational expenses

• Company forecasts mid-single-digit revenue growth and 8-9% EBIT margin for 2026

Outlook

• Company expects 2026 revenue growth in the mid-single-digit percentage range

• Company forecasts 2026 EBIT margin between 8% and 9%

• Company sees 2026 ROCE below prior-year level

Result Drivers

• SEGMENT REVENUE GROWTH - Co said revenue rose in both Europe and Other and North America segments

• EFFICIENCY PROGRAM DELAYS - Delays in efficiency program implementation weighed on EBIT, especially in Europe and Other segment

• ORGANIZATIONAL COSTS - One-off expenses related to organizational optimization reduced EBIT

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Washtec AG is €48.00, about 40.4% above its November 2 closing price of €34.20

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)