Germany's Stratec 9M sales fall, but cost cuts lift margins

Overview

• Germany diagnostics systems maker's 9M/2026 sales fell 5% at constant currency

• Adjusted EBIT margin rose to 8.3% from 7.3%, driven by cost cuts and higher gross margin

• Sales decline mainly due to lower Service Parts and Consumables demand, seen as temporary

Outlook

• Stratec sees 2026 sales stable to slightly higher on constant-currency basis for continuing ops

• Company forecasts 2026 adjusted EBIT margin of 13.0% to 15.0%

• Stratec expects 2026 investments at 5.0% to 7.0% of sales for continuing operations

Result Drivers

• SERVICE PARTS AND CONSUMABLES WEAKNESS - Lower sales in Service Parts and Consumables divisions due to customers optimizing logistics and inventory after ownership changes; company expects this to be temporary but timing of recovery is uncertain

• COST DISCIPLINE - Higher adjusted EBIT margin attributed to cost cuts, product mix, and currency effects

• SYSTEMS SALES GROWTH - Slight increase in Systems sales driven by higher volumes in immunodiagnostics and molecular diagnostics systems

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Stratec Se is €24.75, about 5.4% below its November 11 closing price of €26.15

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

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

• Nov 10 - Germany's Infineon Q4 revenue rises sequentially

• Nov 11 - Germany's Adesso 9-month sales rise 13%, EBITDA up 26%

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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.)