INDUS plans to invest around EUR 500 million in acquisitions by 2030

INDUS plans to invest around EUR 500 million in acquisitions by 2030

• EMPOWERING MITTELSTAND growth strategy: international expansion, acquisitions and technology as growth drivers
• Ambition by 2030: sales of around EUR 3 billion, adjusted EBITA of over EUR 330 million
• Forecast for 2025: sales of EUR 1.75 to 1.85 billion, adjusted EBITA of EUR 150 to 175 million
• Dividend proposal of EUR 1.20 per share

Bergisch Gladbach, 24 March 2025 – Under its new EMPOWERING MITTELSTAND growth strategy, the INDUS Group aims for significant inorganic and organic growth by 2030. The Group plans to generate sales of around EUR 3 billion and adjusted EBITA of over EUR 330 million by 2030 through international expansion, acquisitions and technology.

“We have done our homework in recent years and realigned our portfolio to create the foundation for taking advantage of the current opportunities,” says Dr. Johannes Schmidt, Chairman of the INDUS Group’s Board of Management. “EMPOWERING MITTELSTAND now opens up a clear growth perspective until 2030. By then, we want to achieve earnings per share of over EUR 4,50.”

Focus on bigger targets with high technical expertise

INDUS plans to invest around EUR 500 million in company acquisitions by 2030, generating annual sales of at least EUR 600 million. Schmidt: “For growth acquisition, that is, first-tier acquisitions, we will focus on bigger targets. They are expected to contribute adjusted annual EBITA of at least EUR 4 million per acquired company in the future.”

To better exploit market and product-related growth opportunities, the SME Group has formed technology fields in the Engineering, Infrastructure and Materials Solutions segments that bundle the expertise of the portfolio companies. “The members of the Board of Management responsible for the individual segments are actively developing the newly created technology fields,” says Schmidt. “This also means that we will sell individual portfolio companies that fail to meet our growth and profitability expectations in the medium term.”

Greater internationalization through global acquisitions

INDUS will broaden its search for growth acquisitions to include Europe and will look worldwide for add-on additions that enhance the portfolio companies and technology fields in the segments in the future. Schmidt: “INDUS already generates around 52% of its sales abroad and we continue to see major growth opportunities in international markets. We want to capitalize on this market potential to also boost our resilience to protectionist measures. Our portfolio will continue to expand, particularly in North America.”

Financial year 2024: INDUS holds its own in a challenging environment

Schmidt: “In the financial year 2024, our portfolio companies showed their ability to perform in a challenging environment.” In a tough market, the INDUS Group generated sales of EUR 1.72 billion (previous year: EUR 1.80 billion) and an operating income (EBIT) of EUR 126.7 million (previous year: EUR 149.6 million). The EBIT margin was 7.4% (previous year: 8.3%). EBIT include impairment losses of EUR 6.7 million (previous year: EUR 19.3 million) and PPA amortization of EUR 20.3 million (previous year: EUR 19.2 million). Adjusted EBITA therefore amounted to EUR 153.7 million (previous year: EUR 188.1 million). Earnings after taxes came in at EUR 54.7 million (previous year: EUR 56.1 million). Earnings per share stood at EUR 2.07 (previous year EUR 2.06).

Free cash flow of EUR 135.4 million above target

Operating cash flow amounted to EUR 171.3 million (previous year: EUR 240.1 million). As expected, working capital increased slightly to EUR 470.7 million as of 31 December 2024 (previous year: EUR 466.9 million). A total of EUR 72.7 million were paid to shareholders in 2024 via share buyback programs and dividends. In 2024, the INDUS Group again generated a high free cash flow of EUR 135.4 million (previous year: EUR 198.9 million).

Equity ratio increases to 38.7%

Despite the share buyback programs, the Group’s equity ratio rose to 38.7% (previous year: 37.3%). The debt repayment period, or the net debt to EBITDA ratio, was 2.4 years, which is below the maximum target of 2.5 years. “We will need considerable capital for our EMPOWERING MITTELSTAND growth strategy in the coming years,” says Rudolf Weichert, Deputy Chairman of the Board of Management and CFO of the INDUS Group. “Thanks to our strong balance sheet ratios we can finance our planned growth without capital increases, allowing us to stay within our financial means and maintain our investment grade rating.”

Dividend yield rises to 5.9% based on proposed dividend

“Our shareholders will continue to benefit from our business success in the future through regular dividend distributions,” says Schmidt. For the financial year 2024, the Board of Management and the Supervisory Board will propose a dividend of EUR 1.20 per share to the Annual Shareholders’ Meeting on 27 May 2025 (previous year: EUR 1.20 per share). This corresponds to a dividend yield of 5.9% (previous year: 5.4%) based on the 2024 year-end closing price and a payout ratio of 38.4% (previous year: 38.3%).

M&A result: four acquisitions in the growth industries of measurement and monitoring technology, industrial automation and infrastructure networks

In 2024, INDUS invested EUR 50.9 million in property, plant and equipment and intangible assets (previous year: EUR 61.9 million). Two growth acquisitions and two complementary additions mean that the investment company has achieved its targets: GESTALT AUTOMATION, COLSON and DECKMA have strengthened the Engineering segment. GRIDCOM, a wholly owned subsidiary of HAUFF-TECHNIK since March 2024, has expanded the Infrastructure segment. In 2025, INDUS already completed three further acquisitions: KETTLER, HBS and ELECTRO TRADING.

Materials becomes Materials Solutions segment

The past financial year in the Materials segment was marked by significant volume declines and price pressure. The companies generated sales of EUR 564.8 million (previous year: EUR 619.9 million). The segment’s EBIT amounted to EUR 46.1 million (previous year: EUR 57.3 million), with the EBIT margin at 8.2% (previous year: 9.2%). As part of its EMPOWERING MITTELSTAND growth strategy, INDUS intends to acquire new companies in the area of materials such as composites, engineering plastics, technical textiles, ceramics and metals for this segment. “We aim to acquire companies that produce products and components with a deep industry understanding and stand out in the market due to specific production or process expertise,” says Gudrun Degenhart, member of the Board of Management responsible for the Materials Solutions segment. “The segment was renamed Materials Solutions to reflect that our portfolio companies see themselves as solution providers.”

Despite weak demand, sales in the Engineering segment remained almost stable at EUR 596.7 million in 2024 (previous year: EUR 599.6 million). Operating income (EBIT) amounted to EUR 45.7 million (previous year: EUR 57.0 million). The EBIT margin was 7.6% (previous year: 9.5%).

The companies of the Infrastructure segment increased their EBIT and EBIT margin in spite of the economic weakness in the construction industry. Cost control measures in particular improved the results compared to the previous year. Sales amounted to EUR 559.5 million (previous year: EUR 582.2 million), while EBIT rose disproportionately to EUR 52.3 million (previous year: EUR 49.3 million). The EBIT margin increased to 9.3% (previous year: 8.5%).

Sustainability performance continues to develop positively

In 2024, INDUS further lowered its emission intensity (scope 1 and 2): The target of reducing greenhouse gas emission intensity by at least 6% was clearly exceeded. The management report published as part of INDUS’ Annual Report includes for the first time a sustainability report in accordance with the Corporate Sustainability Reporting Directive (CSRD).

Financial year 2025: Adjusted EBITA becomes new key control variable

INDUS will introduce adjusted EBITA and the adjusted EBITA margin as new key control variables at Group and segment level for the financial year 2025. They will replace the former key control variables EBIT and EBIT margin. Weichert: “The new variables remove the impact of amortization from purchase price allocation and impairment losses. This gives a clearer view of our Group’s core operating performance.” Weichert adds: “We are now also managing our acquisition targets through annualized adjusted EBIT instead of the number of acquisitions. This allows us to better evaluate the future income contribution of our acquisitions.”

Sales expected to grow in a still challenging environment

The INDUS Board of Management forecasts sales of between EUR 1.75 and 1.85 billion, adjusted EBITA of between EUR 150 and 175 million and an adjusted EBITA margin of between 8.5 and 10.0% for the financial year 2025. Even with the planned high level of investments, the free cash flow is expected to exceed EUR 90 million.

Schmidt: “The economic and political framework conditions will remain uncertain in 2025. Having adapted to the high volatility, we are now shifting up a gear with our EMPOWERING MITTELSTAND growth strategy.”

Click here for the full Annual Report of INDUS Holding AG. Information on the EMPOWERING MITTELSTAND growth strategy can be found here.

About us

At INDUS, we have been generating sustained growth from a diversified portfolio of Mittelstand companies since 1989. We focus on acquiring and growing family-owned businesses with unique engineering capabilities internationally. We ensure that our leaders act like true entrepreneurs to grow their businesses and can rely on our evergreen perspective as long-term investors.

Rooted in the German-speaking Mittelstand, INDUS today fully owns and successfully leads more than 40 companies with activities around the world. .Listed on the Frankfurt Stock Exchange (SDAX) since 1995, we have established a unique bridge between the SME sector and the capital market.

For more information, visit www.indus.eu.

Note:

This press release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of INDUS Holding AG and comprise known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. INDUS Holding AG assumes no obligation to update forward-looking statements.