Claas successfully navigated and concluded financial year 2024 with a solid result, despite a tough industry environment. Sales at the end of the fiscal year on 30 September 2024 amounted to 5.0 billion euros, a decrease of 19% compared to the previous year.
The operating profit before depreciation (EBITDA) reached 584 million euros after 769 million euros in the previous year. Net income for the year was 253 million euros (previous year: 347 million euros).
Tight producer prices and elevated interest rates posed considerable challenges for the agricultural sector. Additionally, severe weather conditions and geopolitical tensions have introduced substantial uncertainty, leading farmers and contractors to hesitate in making purchases. These special effects characterized the business development of the agricultural machinery sector in the 2024 financial year.
“The year 2024 has tested our organization. Claas has stayed on course even in rough waters,” emphasizes CEO Jan-Hendrik Mohr. “In times like these, it is crucial to stand together, manage costs efficiently, and proactively advance our business. We have once again increased our R&D expenditure to over 330 million euros and made targeted investments in future projects, new technologies and our production network. As a result, we ensure sustainable growth and drive innovation.”
“We have performed well in the tense and highly competitive agricultural machinery market. Despite a significant decline in sales, our earnings demonstrate our resilience,” says CFO Henner Böttcher. “Today, it is paying off that we adapted our structures and processes early, amid a phase of high market dynamics and increasing geopolitical uncertainties.”
In the past financial year, Claas once again presented numerous new products. The Xerion 12 series has already received numerous international awards since its launch in summer 2023. Since spring, the most powerful tractors of all time have also been among the winners of the iF Design Award 2024.
In summer, Claas celebrated a special milestone in its combine harvester success story. To date, the compnay has marketed over 500,000 combines worldwide, including more than 100,000 Dominator and more than 75,000 Lexion.
Important for growth and export markets was the launch of the Lexion 8900 Terra Trac in North America and the Axion Terra Trac in South Africa. In addition, Claas successfully launched the Xerion 12 tractor series in Kazakhstan and Australia during the financial year, expanded by a third model, the Xerion 12.540.
Future projects at full speed
The new Claas connect went live on 1 October 2024, the starting signal for new digital offerings. In addition, extensive modernization work is currently taking place at the Claas plants. At the forage harvesting technology site in Bad Saulgau, Germany, the ForageGO! project is continuing at full speed. Claas is modernizing the site infrastructure and production facilities by 2025. The aim of the strategic plant development is to adapt the structures and processes to the expanded product portfolio and expand production capacities. Production of combine harvesters, forage harvesters and Xerion tractors will be modernized in Harsewinkel. The new inbound department will soon be operational, and additional production steps will be automated in the future.
The current industry trend is driven by reduced investments by farmers, most of whom have seen producer prices fall sharply to below average levels. Due to the subdued outlook for the sector and the existing global risks, Claas expects a moderate decline in sales and a noticeable decline in income before taxes for the fiscal year 2025 compared to the previous year.
