The German leading index DAX is currently reaching new record highs almost every day. However, the smaller indices are still significantly below their previous highs. For example, the MDAX is still trading almost 30% below its old peak from 2021.

Meanwhile, business is going well for many small publicly traded companies. This is also the case for the Black Forest-based automotive supplier PWO. This is shown by the first preliminary and unaudited business figures presented yesterday by the company from southwestern Germany.

According to these figures, PWO was able to surpass the good previous year’s values both in terms of revenue and earnings. But before I go into more detail about the preliminary business figures of the Swabian automotive supplier, I would like to introduce you to the company briefly.

The PWO AG in a nutshell

As early as 1919, seven Swabian entrepreneurs founded the Progress-Werk Oberkirch, which became the world market leader for air pumps in the 1920s. According to its own statements, today’s PWO AG operates globally as a fully combustion engine-independent automotive supplier.

PWO’s focus is on the development and production of lightweight metal components and subsystems. The Swabian company, which currently employs around 3,000 people, produces a total of more than 1,200 products that are delivered to numerous car manufacturers and their suppliers.

PWO generates around 41% of its revenue in the largest business segment „Electronic, Chassis and Airbag Components“, which includes chassis, components for vehicle electrification, and components for the drivetrain of electric vehicles.

In the „Body Components“ business segment (instrument panel carriers, door components, as well as reinforcements and supports for the vehicle body), the group generates 36% of its revenue.

In the third business segment „Steering and Seat Components“ (steering consoles and steering column tubes, as well as metal structures for vehicle seats), PWO generates 23% of its revenue. Currently, PWO AG has production facilities in Germany, the Czech Republic, Serbia, as well as in Canada, China, and Mexico.

Preliminary business figures for 2023

According to the preliminary business figures published yesterday, PWO achieved a revenue of 555.7 million euros in 2023. This was 4.7% more than the previous year. Thus, the automotive supplier also exceeded its revenue forecast for 2023, which had been around 550 million euros.

PWO also exceeded the previous year’s figure for the currency-adjusted operating result (adjusted EBIT) with 28.1 million euros (+2.2%). At the same time, the upper end of its own forecast range (26 to 29 million euros) was reached.

Forecast values for 2024

Looking at the current year, the automotive supplier remains optimistic. Despite muted overall economic and industry-specific expectations, PWO expects a revenue growth to around 570 million euros in the 2024 financial year.

The currency-adjusted EBIT is expected to be between 29 and 32 million euros in 2024. The company expects earnings increases, especially at its international locations.

Despite the company’s good operational performance and a favorable valuation, the PWO share has been stuck in a sideways trend for almost three years now. Investors need patience here and must hope that the stock will be „awakened“.