Disclosure of Inside Information pursuant to Article 17 MAR
Mar 18, 2025
HWA AG: Inventory Write-Downs Required for 2024
Affalterbach, March 18, 2025 – As part of the preparation of the financial statements for the 2024 financial year, the Management Board of HWA AG has identified necessary write-downs of inventory assets. The volume of these extraordinary write-downs is expected to amount to a high single-digit million euro figure.
The impairment is, among other things, related to the ongoing negotiations with Mercedes-AMG GmbH regarding the sale of the Customer Racing business unit. It is now anticipated that not the entire business unit will be sold, but rather certain parts of the business are expected to be divested by the end of 2025 at the latest. Accordingly, the existing contract with this customer will also expire at the end of the current year.
The planned negative EBIT for the 2024 financial year, in the high single-digit million euro range and excluding the aforementioned extraordinary write-downs, has been achieved. Including the impairment of assets, EBIT for 2024 is expected to amount to approximately EUR -18 million.
The write-downs are non-cash in nature and therefore do not affect the Company's liquidity position.
Contact:
Investor Relations
HWA AG
Marc Schimmelpfennig
Benzstraße 8
71563 Affalterbach
Germany
Phone: +49 (0) 7144 8717-279
Fax: +49 (0) 7144 8718-111
E-mail: ir@hwaag.com
Company Profile of HWA AG
HWA AG is an independent 360-degree engineering specialist in the fields of motorsport and high-performance vehicles. Founded in 1998 by Hans Werner Aufrecht, the company is headquartered in Affalterbach, Germany, and employs more than 250 highly qualified professionals.
All products and services of HWA AG are guided by the principle ENGINEERING SPEED. The company’s mission is to develop the highest-quality and most effective solutions to help its partners and customers achieve their goals faster. HWA AG’s service portfolio ranges from the design and engineering of all vehicle components to the development and production of complete vehicles, complemented by logistics, aftersales and support services.