HGears AG Revises 2024 Financial Outlook Amid Market Challenges

hGears AG has announced an adjustment to its financial guidance for the full year 2024, citing a challenging business environment. The economic slowdown and geopolitical uncertainties are negatively impacting demand, particularly in the [e]-Mobility and e-Bike sectors. The automotive industry's downturn has led to reduced volumes in e-Mobility, while slow destocking affects the e-Bike segment. However, the e-Tools area shows signs of recovery.

The company now anticipates 2024 revenues between EUR 90 - 95 million, down from the previous forecast of EUR 100 - 110 million. Adjusted EBITDA is expected to range from minus EUR 1 to plus EUR 1 million, a revision from the earlier EUR 1 – 3 million. Additionally, free cash flow is projected to be negative EUR 2 - 5 million, compared to the prior guidance of negative EUR 0 - 3 million.

hGears remains focused on efficiency improvements and customer acquisition, aiming to bolster its sales pipeline and optimize capital allocation. The company will report its nine-month results on November 7, 2024.