Topic: Rosenbauer offers a broad range of groundbreaking products and is actively shaping the firefighting market of tomorrow to make the future world of firefighting safer, climate-friendly and more efficient. These technologies range from electric vehicles to drones and satellite images.

Digital solutions make daily tasks easier. With the RDS Connected Command software, firefighters can access operationally relevant information such as maps, alarm data and potential hazardous chemicals on their mobile phone or tablet computers. Further, Rosenbauer has been cooperating with the German aerotech start-up OroraTech since the start of 2022 to detect wildfires early using satellite systems. The aim of the strategic partnership is to provide current and historical satellite data to emergency services on the ground via the RDS Connected Command software. Digital Solutions are part of Rosenbauer’s Customer Service segment, which has been in FY23e responsible for c. 10% of total revenue (eNuW). Going forward, we expect this business unit to grow by 7.0% in FY24e (eNuW).

The future is electric. Rosenbauer is clearly a pioneer in the electrification of firefighting with its electric models RT (Revolutionary Technology) and the PANTHER electric. As more cities start to forbid vehicles with combustion engines, the demand for electric alternatives will rise in the firefighting market. In Amsterdam, for instance, no trucks, buses, and taxis with combustion engines are allowed into the municipal area from 2025. Rosenbauer estimates the share of its electric vehicle sales to reach 50% by 2030. The increasing importance of electric vehicles does not only benefit Rosenbauer’s sales, but also supports profitability, as the company can achieve higher margins with its electric vehicles. This is possible because Rosenbauer builds the chassis for electric vehicles on its own and is at the same time in the position to charge higher prices.     

While those trends should have a positive impact on the P&L during the mid-term, further, the € 1.79bn preliminary FY23 order backlog (FY22: € 1.47bn) should fuel revenue growth in FY24e as the supply chain situation keeps improving (eNuW: + 8.6% yoy in sales). Chassis lead times for MAN, Daimler and Volvo decreased significantly compared to FY22 and the average price per ordered fire truck increased 12.1% yoy during the first 9M of FY23. Hence, we expect to see an improving top- and bottom-line with an increasing EBIT margin for FY24e (eNuW: 4.6%, +1.1pp yoy). We reiterate our BUY rating with an unchanged € 54.00 PT based on DCF.