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Shares of Sixt nosedive as company continues to hemorrhage money, even with reduced losses.

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U.S. wildfires substantially impact Munich Re's property and casualty reinsurance sectors,...
U.S. wildfires substantially impact Munich Re's property and casualty reinsurance sectors, virtually slicing its net earnings in half for Germany's prominent reinsurance corporation.

Sixt's Q1 2025 Earnings Report: A Mixed Bag

Shares of Sixt nosedive as company continues to hemorrhage money, even with reduced losses.

Shares Car rental Germany Expansion Earnings Europe

Sixt, the car rental and mobility firm, took a hit as its shares dropped by nearly 4% on Tuesday. The reason? A mixed earnings report that painted a clear picture of a company caught between growth and profits.

The company reported an annual increase of 10% in revenue for Q1 2025, reaching €858.1 million compared to €780.2 million in the same quarter last year [1][2]. But despite the growth, Sixt remains unprofitable, with earnings before taxes amounting to -€17.6 million, though this is an improvement from the -€27.5 million seen in the same period last year.

The European market showed promising growth, with revenue surging 13.8% year-on-year to €296.5 million [1]. The German division, however, remained stable, posting revenue of €243.3 million for the quarter [1]. Sixt, in its earnings report, maintains an optimistic outlook, stating a continued expansion course for all regional segments, with profitable growth as top priority [1].

The company expects demand for its mobility products to continue rising in the current financial year, and has reaffirmed its forecast for the 2025 financial year, estimating a revenue increase of between 5% to 10%, and a significant rise in the EBT margin to around 10% for the full year [1][2]. Despite the economic uncertainties, Sixt remains cautious with its fleet size, with the fleet growing by just 4% in the first quarter [2].

Stay tuned for more updates on Sixt's future plans and performance.

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Sources

  1. Sixt press release
  2. Reuters article
  3. Inside Eva - Sixt reins in fleet growth
  4. Sixt Annual Report 2024
  5. Nasdaq article

The decline in Sixt's shares could be a consequence of a mixed earnings report that depicts the company straddling growth and profits. The company projects continuous expansion in all regional segments, with a focus on profitable growth.

The growth trajectory of Sixt extends beyond the car rental industry, as the firm invests in various business sectors such as finance and transportation, particularly the automotive industry, in line with its objective for sustainable growth.

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