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Why invest in Cargotec
On 27 April 2023, Cargotec's Bopard of Directors decided to investigate and initiate a process to potentially separate its core businesses Kalmar and Hiab into two standalone companies. On 30 May 2024, Cargotec's Annual General Meeting resolved on the partial demerger of Cargotec Corporation in accordance with the demerger plan. On 30 June 2024, the completion of the partial demerger of Cargotec Corporation was registered with the Finnish Trade Register. Read more
Cargotec published new long-term financial targets for its Hiab business area on 27 May 2024. On 11 February 2025, the Board amended the long-term financial targets set for Hiab to reflect the business’ standalone future.
Cargotec’s Board of Directors has set the following financial targets for Hiab to measure success by 2028:
- Annual sales growth over seven percent over the cycle
- Comparable operating profit 16 percent
- Return on capital employed over 25 percent1
Standalone Hiab also aims for a growing dividend of 30–50 percent of EPS and to keep gearing below 50 percent.
In addition to the long-term financial targets, Cargotec’s climate target, validated by the Science Based Targets initiative (SBTi) in 2020, remains valid for the time being. The company is planning to update the climate target for standalone Hiab and apply for its validation from SBTi. The process starts in 2025.
The comparable operating profit target was amended from 18 percent as a business area to 16 percent as a standalone company to reflect increased corporate administrative and support function costs, which were earlier part of Cargotec group’s corporate administrative and support functions. In 2024, these costs were approximately 1.7 percent of sales.
Read more from a release published on 11 February 2025
1 Operative ROCE defined as (Operating profit / Operative capital employed)
