Not only clean, but yield.

Last Updated: 15. Dezember 2023By

In the winter, cars must be taken to the car wash. WashTec profits. We explain what else the stock has to offer besides a 6.7% dividend yield. First, some facts: WashTec was founded in 2000 through the merger of California Kleindienst and Wesumat AG. Today, the company is a leading provider of car wash systems for passenger cars, commercial vehicles and rail vehicles. Portal systems, car wash systems and self-service wash bays make up the range of products for passenger cars and commercial vehicles. WashTec is active in more than 70 countries.

Clean development at WashTec WashTec achieved a new record in the first 9 months with a turnover increase of 5.3% to €356.7 million. This was due to price increases, the positive development of the major customer business and in particular the chemical division. On a currency-adjusted basis, growth was 7.2%. Operating income (EBIT) improved due to revenue growth and active cost management from €22.6 to €26.9 million. In the third quarter, WashTec achieved a significant increase in EBIT of 18.6% due to the successful implementation of efficiency programs in the North America region.

The EBIT margin increased to 9.6%, both above the previous quarter and the first two quarters of 2023. Order intake in the first 9 months was significantly lower than in the previous year due to the decline in demand in the overall market. As a result, the order backlog at the end of September was lower than the previous year’s figure. It should be noted that the order backlog was higher in the previous year due to advance orders. Compared to the long-term average, the order backlog is at a high level.

These advances are convincing The positive results give momentum to drive forward the strategy of stronger bundling of machines, services, chemicals and digitalization. The launch of SmartCare was another milestone. The Executive Board confirmed the forecast for 2023 and expects an increase in EBIT of 10%. WashTec profits from price increases – customers pay. This also seems to secure the attractive dividend. This stock should be on your radar!