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Germany's Gesco nine-month EPS jumps, reaffirms FY forecast

By Reuters News


Overview

  • Germany industrial group's nine-month revenue rose 1.0% to €368.3 mln

  • EPS for first nine months rose 29.8% to €1.04

  • Company confirmed raised full-year 2026 revenue and earnings guidance


Outlook

  • Gesco SE sees 2026 revenue between €525 mln and €543 mln

  • Company expects 2026 net income of €15 mln to €20 mln

  • Company says ARKU acquisition will contribute to profit starting in 2027


Result Drivers

  • COST STRUCTURE OPTIMIZATION - Co said improved margins and earnings were driven by lower material costs and reduced operating expenses

  • SEGMENT PERFORMANCE - Strong demand in Materials Refinement & Distribution segment led to significant growth in orders, revenue and operating income

  • MIXED SEGMENT RESULTS - Co said Health Care & Life Science and Industrial Assets & Infrastructure segments faced weaker demand and lower earnings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

9M Sales

EUR 368.30 mln

9M EPS

EUR 1.04

9M Net Income

EUR 10.80 mln

9M EBIT

EUR 18.10 mln

9M Orders

EUR 387.50 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "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 Gesco SE is €22.00, about 57.1% above its November 10 closing price of €14.00

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Nov 10 - Germany's K+S Q3 revenue beats estimates on de-icing salt volumes

  • Nov 10 - German photonics group Jenoptik's 9-month sales, profit rise on strong demand, cost cuts

  • Nov 10 - K+S tops third-quarter core earnings estimates on higher prices, early de-icing salt sales


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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