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1. Company Snapshot

1.a. Company Description

Wacker Neuson SE manufactures and distributes light and compact equipment under the Wacker Neuson, Kramer, and Weidemann brand names in Europe, the Americas, and the Asia-Pacific.It operates through three segments: Light Equipment, Compact Equipment, and Services.The company offers internal and external vibrators for concrete compaction; trowels and screeds for concrete finishing; rammers, vibratory plates, and rollers for soil compaction; demolition products and saws; lighting; generators; pumps; and heaters.


In addition, it offers compact construction equipment, including track and mobile excavators, wheel loaders, telescopic handlers, skid steer and backhoe loaders, compact track loaders, and wheel and track dumpers.The company also provides repair, maintenance, and spare parts; and used equipment, as well as rental, leasing, financing, training, telematics, and e-business services.It serves construction, gardening, landscaping, and agriculture sectors, as well as municipal bodies and companies in the recycling, energy, oil and gas, and rail transport sectors.


The company was founded in 1848 and is headquartered in Munich, Germany.

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1.b. Last Insights on WAC

Wacker Neuson SE's recent performance was driven by its strategic restructuring efforts, which aim to navigate the company's 16% revenue decline in FY 2024. The company's focus on future growth plans, as highlighted in its FY 2024 earnings call, suggests a proactive approach to addressing market challenges. Additionally, Wacker Neuson's estimated fair value of €32.18, based on 2 Stage Free Cash Flow to Equity, indicates potential for long-term growth. The company's commitment to dividend payments, with yields up to 7.2%, also provides a stable source of income for investors.

1.c. Company Highlights

2. Wacker Neuson's 9-Month Earnings: A Mixed Bag

Wacker Neuson Group reported its 9-month earnings for 2025, with revenue amounting to EUR 1.625 million, a 5.6% decline year-over-year. The decline was primarily due to a weak first quarter and persistently weak demand in the U.S. The 9-month EBIT margin was 6.0%, 0.3 percentage points below the previous year. However, the EBIT margin in Q3 was 7.5%, nearly on the same level as Q2 2025 and 2.7 percentage points higher compared to Q3 2024. The actual EPS came out at '0.39', beating estimates at '0.36'.

Publication Date: Nov -24

📋 Highlights
  • Revenue Decline: 9-month revenue fell to EUR 1.625 million (-5.6% YoY) due to weak Q1 and U.S. demand.
  • EBIT Margin Recovery: Q3 EBIT margin rose to 7.5%, up 2.7pp YoY, though 9-month margin dipped to 6.0% (-0.3pp YoY).
  • Strong Free Cash Flow: Free cash flow reached EUR 116 million, with net working capital ratio projected to reach 34% by year-end.
  • Revised Guidance: Full-year revenue forecast narrowed to EUR 2.15–2.25 billion and EBIT margin of 6.5–6.8%.
  • Regional Imbalance: Europe dominated 78% of revenue (EUR 1.269B), while Asia Pacific dropped 21% to EUR 34 million.

Regional Performance

The company's regional performance was mixed, with revenues in the Europe region standing at EUR 1.269 billion, making up 78% of global group revenue, while the Americas region accounted for 20% of group revenue, with revenues of around EUR 322 million. The Asia Pacific region represented 2% of business, with revenue dropping by 21% to approximately EUR 34 million.

Cash Flow and Working Capital

The company's net working capital ratio was 32.4%, slightly below the value at the end of Q2 2025, and free cash flow surpassed the triple-digit mark, amounting to EUR 116 million. The company expects a slightly higher working capital ratio by year-end, predominantly caused by higher inventories in the U.S.

Guidance and Outlook

The company narrowed its yearly guidance, anticipating revenue between EUR 2.15 billion and EUR 2.25 billion and an EBIT margin between 6.5% and 6.8%. Analysts estimate next year's revenue growth at 9.4%. The company expects market recovery in Europe and normalization of market demand in the U.S. in 2026.

Valuation

With a P/E Ratio of 27.94 and an EV/EBITDA of 7.8, the stock appears to be reasonably valued. The Dividend Yield of 3.3% and Free Cash Flow Yield of 20.67% are also attractive. However, the ROE of 2.98% and ROIC of 2.76% indicate that the company's profitability is still a concern.

Strategy and Milestones

The company continues to implement its Strategy 2030, with milestones on track, including the John Deere cooperation and the expansion of its light equipment portfolio. The production start for the John Deere operation in the U.S. is planned by the end of 2025, with deliveries expected in 2026.

3. NewsRoom

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Dec -03

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Top European Dividend Stocks To Consider In November 2025

Nov -25

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Wacker Neuson SE (WKRCF) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Nov -25

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Why Wacker Neuson SE (ETR:WAC) Could Be Worth Watching

Nov -13

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Wacker Neuson SE (ETR:WAC) Shares Could Be 29% Above Their Intrinsic Value Estimate

Oct -17

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Wacker Neuson SE's (ETR:WAC) Stock Has Shown A Decent Performance: Have Financials A Role To Play?

Sep -10

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Is Wacker Neuson SE (ETR:WAC) Potentially Undervalued?

Jun -02

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Some Investors May Be Willing To Look Past Wacker Neuson's (ETR:WAC) Soft Earnings

May -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.30%)

6. Segments

Compact Equipment

Expected Growth: 2.5%

Wacker Neuson SE's Compact Equipment segment growth of 2.5% is driven by increasing infrastructure development, urbanization, and construction activities. Additionally, the company's focus on innovative and energy-efficient products, expansion in emerging markets, and strategic partnerships contribute to its growth momentum.

Light Equipment

Expected Growth: 1.8%

Wacker Neuson's Light Equipment segment growth of 1.8% is driven by increasing demand for compact construction equipment, particularly in urban infrastructure projects. Additionally, the company's focus on innovative products, such as battery-powered equipment, and its expanding distribution network in emerging markets are contributing to growth.

Services

Expected Growth: 2.2%

Wacker Neuson SE's 2.2% growth in services is driven by increasing demand for construction and industrial equipment, expansion into emerging markets, and a growing need for equipment rental and maintenance services. Additionally, the company's focus on digitalization and electrification of its products is expected to further boost growth.

Cash Discounts

Expected Growth: 1.5%

Wacker Neuson SE's 1.5% cash discount growth is driven by increasing construction equipment sales, expansion into emerging markets, and a focus on digitalization, leading to improved operational efficiency and cost savings. Additionally, the company's strategic pricing strategy and effective working capital management contribute to the growth in cash discounts.

7. Detailed Products

Compact Excavators

Wacker Neuson's compact excavators are designed for versatility and ease of use, ideal for construction, landscaping, and demolition projects.

Wheel Loaders

Wacker Neuson's wheel loaders are built for heavy-duty applications, offering high productivity and efficiency in construction, mining, and agriculture.

Dumpers

Wacker Neuson's dumpers are designed for efficient material transport, suitable for construction, landscaping, and agricultural projects.

Vibratory Rollers

Wacker Neuson's vibratory rollers are designed for soil compaction, offering high-quality results in road construction, landscaping, and civil engineering.

Rammers

Wacker Neuson's rammers are designed for soil compaction in tight spaces, ideal for construction, landscaping, and civil engineering projects.

Generators and Lighting

Wacker Neuson's generators and lighting solutions provide reliable power and illumination for construction, events, and emergency response.

Pumps and Accessories

Wacker Neuson's pumps and accessories are designed for dewatering, irrigation, and other fluid management applications.

8. Wacker Neuson SE's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Wacker Neuson SE is moderate, as there are alternative products and services available in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as Wacker Neuson SE has a diverse customer base and no single customer has significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Wacker Neuson SE relies on a few key suppliers for critical components, but the company's strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low, as Wacker Neuson SE has significant barriers to entry, including high capital requirements and established relationships with customers and suppliers.

Intensity Of Rivalry

The intensity of rivalry is high, as Wacker Neuson SE operates in a highly competitive industry with several established players, and the company must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.02%
Debt Cost 4.83%
Equity Weight 77.98%
Equity Cost 10.65%
WACC 9.37%
Leverage 28.23%

11. Quality Control: Wacker Neuson SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Odfjell

A-Score: 6.8/10

Value: 8.5

Growth: 7.7

Quality: 6.2

Yield: 9.4

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Clarkson

A-Score: 6.2/10

Value: 5.2

Growth: 7.3

Quality: 8.2

Yield: 5.6

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Wacker Neuson

A-Score: 6.0/10

Value: 6.8

Growth: 4.8

Quality: 4.1

Yield: 6.9

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Belships

A-Score: 5.9/10

Value: 6.8

Growth: 6.0

Quality: 6.2

Yield: 7.5

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Exel

A-Score: 5.3/10

Value: 9.3

Growth: 4.8

Quality: 3.6

Yield: 5.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Rosenbauer

A-Score: 4.6/10

Value: 6.1

Growth: 5.1

Quality: 2.4

Yield: 1.2

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.15$

Current Price

25.15$

Potential

-0.00%

Expected Cash-Flows