Gurit announces strategic alignment to preserve wind leadership, accelerate growth in other markets

On Oct. 30, Gurit (Zurich, Switzerland) reports its unaudited net sales results for the first 9 months of 2024 at CHF 315.1 million (~$364 million), which is a decrease of -7.3% at constant exchange rates or -10.6% in reported CHF compared to 2023. Acknowledging that wind markets do not currently meet expectations, Gurit has initiated a corporate strategy update and is implementing measures to benefit profitably from the wind market and to rebalance its portfolio. Mitja Schulz, CEO of Gurit, is leaving the company. The board of directors has appointed Javier Perez Freije as CEO ad interim with immediate effect.

Q3 2024 revenue was impacted across all wind business units through low demand; anticipated activity increase did not fully materialize. Despite these developments, Gurit believes that next year’s wind sales will increase. The company has strengthened its position in this sector with a major strategic Western wind OEM, though notes that some market players are attempting to leverage China’s overcapacity, particularly to benefit from cheaper carbon fibers. Consequently, Gurit is advancing with strategic initiatives to protect wind business margins, setting it for sustainable growth in the long-term.

Marine and industrial markets kept performing as expected, and Gurit anticipates an accelerated growth trajectory in the short term.

Wind materials achieved net sales of CHF 210.7 million (~$243 million) for the first 9 months of 2024. This represents a decrease of -6.1% at constant exchange rates compared to the first 9 months of 2023, with lower blade volumes and core kits prices seen on a year-over-year comparison. Per a long-term agreement with a Western customer, Gurit expects a market share increase in 2025. This includes core kits using Gurit’s newly developed Opticore technology, helping customers to optimize blade design and reduce blade weight. Structural Profiles has shipped the expected volumes from all three sites.

While ongoing growth is expected for high-performing glass fiber blade root products, the carbon fiber planks market sees customers turn to China, impacting future market share of Western producers.

Manufacturing solutions recorded net sales of CHF 27.8 million (~$32 million), which represents a decline of -26.2% at constant exchange rates compared to the first 9 months of 2023. While Q3 was characterized by low demand across all wind customers, Q4 is expected to see a much stronger order book. Gurit says it could successfully secure a long-term contract for molds and equipment with a turbine OEM, which will ensure a stable revenue stream for its new plant in Chennai and strengthen the company’s position in the Indian wind market

Marine and industrial reported net sales of CHF 76.7 million (~$88.5 million) for the first 9 months of 2024. This represents a decrease of -1.5% at constant exchange rates compared to 2023. After a slow Q1, the marine markets improved as anticipated throughout Q3, with good progress made in the industrial markets with PET. Compared to last year, a decline in the agriculture segment impacted Q3 revenues. Gurit remains focused on leveraging its core competencies in recycled PET foam to capitalize new business opportunities and drive further growth.

Streamlining wind operations

As a result of Gurit’s strategic realignment, which will provide the group with a stronger positioning across multiple markets and ensure long-term competitiveness in its wind business, Gurit’s board and management are taking actions to right-size the wind business and to focus on accelerating growth in attractive areas. Gurit is confident that these proactive moves will enable to effectively capitalize on its core competencies in performance materials and increase value to customers and shareholders.

To drive these initiatives, Gurit is in the process of undertaking the following strategic actions:

• Right-sizing wind operation and capitalizing on key competitive advantages.
• Driving organizational efficiency and reducing indirect costs across the company.
• Accelerating growth in multiple industrial segments, leveraging significant opportunities driven by increasing energy efficiency and sustainability requirements of customers.

These measures are expected to result in restructuring expenses, mostly in 2024, and are to be implemented in the coming months.

Gurit reiterates its latest full-year 2024 guidance. The company expects full year sales to be around CHF 435 million (~$502 million) and confirms the 5-8% adjusted operating profit margin.