NCTE AG: Preliminary Figures 2024 – Investing in a New Start

Weak demand in the E-bike and agricultural sectors impacts revenue
Planned capital increase by majority shareholder to secure liquidity and investment flexibility
Focus on technological innovation in non-contact torque measurement
2025 expected to remain a transition year – investments as preparation for market recovery in E-bike and agriculture

– Preliminary figures, subject to auditor’s review –

Oberhaching, April 29, 2025 – NCTE AG today announces its preliminary figures for the financial year 2024. Revenue declined to EUR 4.0 million (previous year: EUR 6.0 million), EBITDA amounted to EUR –1,022 thousand (previous year: EUR 421 thousand), and the net loss totaled EUR –1,293 thousand (previous year: net profit of EUR 80 thousand). Accordingly, the company remained in line with its most recent guidance. Equity as of December 31, 2024, stood at EUR 2.0 million (previous year: EUR 3.3 million).

Global market weakness impacts financial year 2024

The ongoing difficult conditions in international markets – particularly in NCTE’s key sectors E-bike and agriculture – significantly impacted the company’s business in 2024.

In Germany, one of NCTE’s core markets, E-bike production declined by approximately 16% according to industry analyses. The global agricultural technology sector also showed clear signs of weakness: for the first time since 2015, the agricultural industry in Germany recorded a downturn, with agricultural machinery revenue falling by over 20% to EUR 12.2 billion.

These market developments affected demand for NCTE’s sensor solutions, especially in high-volume applications such as E-bike drives and agricultural machinery. Other business areas, such as medical technology, dealer business, and motorsport, performed at or above the previous year’s level, but could not fully offset the decline in the core markets.

Planned capital increase to create flexibility for future investments

As part of its strategic development, NCTE AG is currently planning a capital increase through its majority shareholder. The objective is to strengthen the company’s financial base and create room for targeted investments. The planned proceeds are intended to support the development of new products, technologies, and applications, helping NCTE to renew its growth trajectory.

“In 2024, we worked to strengthen our structures, launched innovation projects, and set a clear innovation agenda. With the planned investments in 2025, we aim to actively use the current market weakness to emerge stronger from the crisis,” said Dr. Jürgen Uebbing, CEO of NCTE AG.

“The targeted capital increase by our majority shareholder is intended to give us the necessary flexibility to invest counter-cyclically in future-oriented topics – new products, international market expansion, and the continued development of our technological leadership,” added CFO Sebastian Müller.

2025: No market recovery yet – but strategic preparation for future opportunities

NCTE expects 2025 to remain a transition year. A broad-based recovery in the E-bike market is anticipated no earlier than the second half of the year, and volatility in the agricultural technology sector is likely to persist. Nevertheless, NCTE sees the opportunity to strategically use 2025 to further develop its technology and implement its planned innovation projects. The company also aims to further expand its market access in strategically important regions such as Asia and North America.

For 2025, NCTE AG expects revenue between EUR 4.0 million and EUR 5.25 million and EBITDA between EUR –1.6 million and EUR –0.6 million. It should be noted that the EBITDA forecast includes capitalization of development costs in the range of EUR 0.5 million to EUR 0.8 million.

Note:
The figures stated in this release for fiscal year 2024 and the forecast for 2025 are preliminary and unaudited. They may differ from the final audited financial statements. Binding statements regarding the full financial results will only be made with the publication of the audited financial statements.

Forward-looking statements:
This release contains forward-looking statements, which reflect NCTE’s current views at the time of publication. Such statements are subject to risks and uncertainties beyond NCTE’s control that could cause actual results to differ materially from those projected. NCTE assumes no obligation to update or revise forward-looking statements in response to future events or developments.