Nagarro SE published preliminary FY24 results following the postponement of its audited annual report. The delay is due to technical issues in revenue recognition and the transition to new auditor KPMG, involving purchase price allocations and earn-out liabilities, impacting goodwill and intangible asset valuations. Despite this, FY24 revenue reached EUR 972m, up 6.6% yoy, with adjusted EBITDA increasing to EUR 146.5m and a margin expansion to 15.1% (+1.3pp yoy). Q4 revenue grew 11.4% yoy, with adjusted EBITDA rising 10.3%. 2025 outlook was not revised, but mwb research’s analysts see potential weakness due to US tariff turmoil and its potential impact on customer demand, leading to a revised price target of EUR 97.00 (old: EUR 102.00), while maintaining a BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Nagarro%20SE

Traton reported detailed Q1 2025 results that were in line with its preliminary release. Revenues during the quarter declined 10% yoy to EUR 10.6bn on a similar 10% yoy drop in volumes to 73.1k units. This along with unfavorable unit economics resulted in a steep 42% yoy decline in adj. EBIT to EUR 646m (was a 26% miss vs consensus at the time of pre-release). Scania, MAN Trucks, and International Motors faced significant stress from weakening demand in Europe and growing concerns in North America. For now, Traton is sticking to its FY 2025 guidance, anticipating improved business performance in H2 and projecting a change in unit sales and absolute revenues of -5% to +5% yoy and an operating margin of 7.5%-8.5% for the full year. However, in the view of mwb research’s analysts, the ongoing uncertainty surrounding US tariffs could adversely affect global investment and the cyclical truck market, likely prompting guidance cuts ahead. The analysts maintain their estimates that they had lowered at the time of Q1 prelims and reiterate their SELL rating at an unchanged price target of EUR 23.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

Knorr-Bremse’s preliminary Q1 25 results show a mixed picture but highlight strong operational momentum. Order intake significantly beat expectations at EUR 2.376bn (consensus: EUR 2.066bn), driven by solid demand in the Rail division and a strong Truck business in Europe. Revenue of EUR 1.958bn and operating EBIT of EUR 236m came in slightly below consensus. Net income and EPS were also under consensus, mainly due to EUR 23m in expected restructuring charges tied to the BOOST 2026 program. Despite this, the company reported a notable improvement in free cash flow to EUR 15m (Q1 24: -EUR 95m), aided by a EUR 45m tax refund. mwb research’s analysts upgrade their rating from SELL to HOLD and raise their price target slightly to EUR 80.00 (from EUR 79.00). While fundamentals are improving, the analysts remain cautious and await further confirmation. The full update can be downloaded under https://www.research-hub.de/companies/Knorr%20-%20Bremse%20AG

Mayr-Melnhof Karton (MM) reported strong profitability in Q1 2025, despite ongoing difficult market conditions. With revenues rising 1.7% yoy to EUR 1.04bn, adjusted EBITDA was up 26% yoy to EUR 119m, driven by improved performance in Board & Paper and Food & Premium Packaging. However, free cash flow turned negative at EUR -184m due to a EUR 226m increase in working capital, which was however partly driven by reduced factoring. The closing of the sale of TANN Group in H1 25 should strengthen the balance sheet. While MM’s packaging divisions showed mixed results yoy, with Food & Premium Packaging performing well and Pharma & Healthcare Packaging under pressure, MM Board & Paper returned to profitability owing to MM’s ongoing cost control and structural improvements. mwb research’s analysts maintain their BUY rating with an unchanged price target of EUR 115.00. The full update can be downloaded under https://www.research-hub.de/companies/Mayr-Melnhof%20Karton%20AG

Leifheit, founded in 1959, has established a strong position in the European household products sector, particularly in the German market, where the company holds a leading position. Leifheit benefits from a strong brand, long-term retailer relationships, and a well-developed distribution network. Known for high-quality, functional products, Leifheit has adapted to retail trends by placing greater emphasis on design and expanding its e-commerce presence. Investments in automation and digitalization have improved efficiency and consistency, resulting in significant improvements in gross and operating margins over recent years. The company leverages its consistently strong free cash flow to reward investors with a steadily rising dividend, currently yielding around 6%, while maintaining a minimum payout ratio of 75%. Building on its strong position in core markets, Leifheit is well-positioned to expand further beyond Germany into selected European markets. mwb research’s analysts initiate coverage of Leifheit with a BUY rating and a PT of EUR 30.00 offering an upside potential of 37.6%. The full update can be downloaded under: https://research-hub.de/companies/leifheit-ag

TAKKT reported challenging Q1 25 results which at least showed some stabilization, with organic sales declining by “only” 7.6% yoy. Earnings (EBITDA and EBIT) however fell sharply by 33.3% and 57.6%, respectively, due to lower gross margins (39.8%) and higher freight costs. On the bottom-line EPS remained just positive with EUR 0.02. Inventory build-up however pushed free cash flow into negative territory (EUR -5.0m) after having achieved a comfortable cash generation in last year’s period. Despite external challenges, including US tariffs, management confirmed full-year guidance, supported by strategic cost-saving initiatives and improved customer alignment under the "TAKKT Forward" program. mwb research’s analysts maintain their HOLD rating and PT of EUR 8.50, awaiting clearer signs of demand recovery. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Rheinmetall delivered a strong set of preliminary Q1 results, with sales and operating profit clearly exceeding expectations, driven by the military segment. Order intake was robust, lifting the backlog to a new record level. Guidance for FY2025 was confirmed, but mwb research’s analysts see potential for an upgrade as German defense spending is expected to accelerate following the new government’s inauguration. Rheinmetall’s strategic positioning remains compelling, supported by broader EU rearmament efforts and bestin-class defense systems. The analysts maintain their EUR 2,000 price target and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

ATOSS Software’s Q1 2025 revenues grew 11% yoy to EUR 46.2m, broadly in line with consensus. However, EBIT of EUR 15.6m (+11% yoy) surpassed market expectations by 3%. Q1 performance was again driven by the SaaS business, with revenues from cloud/subscription up 30% yoy, now accounting for 46% of total revenues (vs 39% yoy in Q1 2024). Overall recurring revenues (subscription + maintenance) were up 20% yoy to EUR 31.3m. Despite the current global macro uncertainty, management left its 2025 guidance largely unchanged, targeting sales of “around” EUR 190m (vs >EUR 190m earlier), and reiterated its EBIT margin guidance of at least 31%. Medium-term targets include revenue growth at a minimum 13.0% yoy CAGR over 2025-2027 (c.18.0% CAGR thereafter until 2030) and the EBIT margin to improve to >35% by 2030, which were confirmed. With the medium-term outlook being more back-end loaded, mwb research’s analysts stick to their HOLD rating at a higher PT of EUR 125.00 (old: EUR 120.00). The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20SE

Bechtle AG reported preliminary results for Q1 2025, issuing a warning that earnings before tax for the quarter were significantly below consensus. Revenues of EUR 1.46bn were down c.3% yoy, coming in 1% behind consensus. However, EBT declined 33% yoy to EUR 55m in Q1 and missed market expectations by a wide 30%. Profitability was mainly impacted by increased personnel costs (in part due to last year’s acquisitions), as well as a marked rise in non-wage labour costs. Despite a lackluster start to 2025 and current macro challenges, management expects a pickup in demand in H2, particularly from public-sector clients. Against this backdrop, it reiterated its cautious outlook for FY 2025, guiding a weak 2.5% yoy business volume development with flat yoy revenue and EBT growth at the midpoint. While near-term uncertainty persists, Bechtle’s M&A-based expansion strategy and increasing demand for digital transformation among SME customers are likely to drive growth beyond 2025. mwb research’s analysts maintain their BUY rating on the stock but have slightly reduced their price target to EUR 46.00 (previously EUR 48.00). The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Ceconomy announced that CEO Dr. Karsten Wildberger will step down on May 5, 2025, to join Germany’s federal government. While CEO transitions often raise concerns, the analysts believe Ceconomy remains well positioned to continue its transformation without material disruption. Since 2021, Wildberger has reshaped the company’s strategy, moving Ceconomy toward a platform-based business model with five scalable, high-margin revenue streams, reducing dependency on cyclical consumer electronics sales. Succession planning is already underway, and with an Executive Committee in place, operational continuity appears secured. mwb research’s analysts view Wildberger’s appointment as external recognition of his achievements rather than a sign of instability. Transition risks are limited. The analysts reiterate their BUY rating on Ceconomy with a price target of EUR 3.75. The full update can be downloaded under https://www.research-hub.de/companies/Ceconomy%20AG