Aalberts Faces Revenue Decline Amid Challenging Markets

In the first ten months of 2024, Aalberts reported an organic revenue growth decline of 2.9% compared to the previous year. The building technology segment experienced a significant decrease of 4.7%, while the industrial technology segment was down by 0.7%. The company is implementing productivity improvements, cost savings, and inventory reductions to counteract the impacts of cost inflation and reduced volumes. Despite the challenges in Europe, particularly in Germany and France, there were signs of improved demand in the Benelux and Switzerland regions. Furthermore, Aalberts noted decreased end-user demand in new builds and a slowdown in renovation work. Despite these setbacks, their order book remains healthy, primarily due to a diversified customer mix and steady growth in service and refurbishment activities. The company is actively investing in expanding capacity to support its strategic growth initiatives and the needs of its customers. In the sustainable transportation sector, Aalberts faced declining automotive demand across Europe and America, though aerospace delivered robust growth due to strong air travel demand and aging fleets requiring modernization. The company also divested its Elkhart Products Corporation, a copper solder fitting manufacturer generating around USD 80 million annually, as part of its portfolio optimization strategy. CEO Stéphane Simonetta commended the Aalberts team for their resilience in challenging market conditions and emphasized the need for ongoing investments to ensure future growth and readiness for market recovery.